Form 15 ca, 15 cb and reassessment notice
Aman
(Querist) 05 August 2014
This query is : Resolved
I have a specific query that whether non furnishing of forms 15CA and 15CB by the resident(assessee) when rendering payments to a non resident may amount to 'material non disclosure' on the part of the assessee and can the same be used as a reason by the AO to reopen assessment even after 4 years?
Further, since the Original Notification in this regard came on July 2009, so will the same govern any payments which have been furthered by a resident to a non resident in AY 2008-09?
Anirudh
(Expert) 06 August 2014
The answer to your question is YES.
Which notification you are talking about?
Aman
(Querist) 06 August 2014
Hi Anirudh,
In the excerpt below find the relevant notification no. pertaining to submission of Forms 15CA and 15 CB by an assessee whenever he makes payment to a non resident:
Finance Act, 2008 inserted a new sub section (6) to section 195 effective from April 1, 2008, which requires the person responsible for making payment to a non-resident to furnish information relating to such payments in forms to be prescribed. The Central Board of Direct Taxes (“CBDT”) has now, by notification No 30/2009 dated March 25, 2009, prescribed a new rule 37BB in the Income Tax Rules, 1962 (“the rules”) prescribing Form 15CA and Form 15CB to be filed in relation to remittances to non-residents under section 195(6) of the Income Tax Act, 1961 (“the Act”). This new rule is effective from July 1, 2009 and shall apply to all remittances being made after July 1, 2009.
Anirudh
(Expert) 06 August 2014
Dear Mr. Aman,
I am happy that being a student, you are showing great interest in the subject.
Please indicate whether the provisions of Sec. 195(1) had been complied with or not.
Aman
(Querist) 06 August 2014
Thank You Sir for your prompt response!
In the original assessment proceedings the said payments which were advanced by the assessee to a non resident company did come to the knowledge of the AO but the same was then unintentionally and completely overlooked by him, thus the assessee did not deduct TDS on these payments.
Subsequently, after 5 years when AO came to know about the true nature of the said transactions he deemed them to be 'sum chargeable under this act' and he then issued a reassessment notice for the concerned AY.
My query is whether such a reassessment notice appropriate? Further, can AO give reason of non submission of Form 15CA and 15 CB by the assessee as a material non disclosure for reassessing after a period of 4 years?
Aman
(Querist) 06 August 2014
Further sir, another doubt in this regard which I am currently facing is that whether a single reassessment notice be issued by AO for more than one AY? If yes, then whether that same reassessment notice be saved if it includes AYs for which 6 years have elapsed in addition to the AYs for which such a upper time limit has not elapsed?
T. Kalaiselvan, Advocate
(Expert) 09 August 2014
