False addition in the assessee"s total income
Shanoo
(Querist) 27 August 2009
This query is : Resolved
Hello sir,
I need your help and advise.
My father has been harrassed by the income tax department unnecessarily by adding the Istridhan of her daughter who had got married in 2002 and then returned home due to their inlaws tried to burn her alive and she had filed a case against her inlaws for her istridhan and attemptto murder case but her inlaws had made a compalain against my father in income tax for the details of istridhan which my sister had filed in court my sister had no were mentioned about my father in the FIR and moreover she had filed in her own capacity as an assessee in court but Income tax had forcebily ordered and addition of 22k and a penalty of 11k. and they had also send a notice for stay of 2 of our property our case is in appeals and the IT officer is not ready to listen to our answers and daily they are tourtring my parents my father accounts deoes show any avoidance of income and the accounts are clear.
Please help we are in a mess and need some help of an expert as we do not have much money to spend against charterred acoountants.
A V Vishal
(Expert) 27 August 2009
Kindly give complete facts and the stage where the proceedings in Income Tax are currently
Sugata Shankar Roy
(Expert) 28 August 2009
My opinion regarding the case is detailed below:
1)The Income Tax Department on the basis of information received from any informer will investigate the case by the Investigation Department.
2)Thereafter they will send a report to the Assessing Officer. In case the report is against the assessee, the Assessing Officer (AO) may scrutinize the current return of the assessee under section 143(3) of the Income Tax Act after issuing necessary notices prescribed by the Act. The Assessee has to give all expanations as asked by AO and submit documents as required by AO.
(4)
Sugata Shankar Roy
(Expert) 28 August 2009
contd.
(4)The Assessing Officer after giving scope of hearing and further the AO must show cause why he will not add back on the basis of evidenced received.
(5) In case the AO did not give proper scope of hearing the Assessee in its appeal may fight the case that he has been denied natural justice and explain the source of Istridhan given to daughter. The CIT(A0 will pass order after hearing the facts.
(6) As regards penalty the Assessee can also file an appeal. In case the additions are dropped there will not be any penalty. Further even if the additions are confirmed the penalty may also be dropped under certain circumstances e.g. estimated additions etc.
(7)It is my suggestion not to be worried but fight the case with proper grounds at the appropriate forum.
For further clarifications you may always contact me.
Best wishes,
Sugata Shankar Roy
Kolkata
Shanoo
(Querist) 28 August 2009
Hello Sugata,
Thanks for the advise.
I am having a query on your decision that we had already given in written that all the expenses of my marriage had been incurred by my late grand mother and we do not have any proof. and as well as the istridhan which i had received during marriage is still with my inlaws as i lost my case against them and they had proved in high court that i had come with 2 suitcases only and my parents had not given me anything.
at the time i left my inlaws place they had also taken my mangalsutra and glass bangles and i left the house in 4 clothes which i was wearing.
I also want to know can a father be asked about the expenses which he has not incurred moreover i also spent some of my saving which i had earned during my job before marriage.
and i had filed a case as wife and not shown any expenses incurred by my father and moreover the list includes most of things which i had received from my inlaws for that how can my father be assessed but the ITo is not ready to read the headline and understand it.
and how can i transfer my father file to the orginal ward.
Sugata Shankar Roy
(Expert) 03 September 2009
First, your father should be assessed by his Assessing Officer who is having jurisdiction in respect to his file. The said Assessing Officer may initiate the case on the basis of information received by him. The jureisdiction depends on the nature of income and address and also the ward where he has been regularly filing the return.
Second, it seems he is being assessed by some other Assessing Officer. In that case the said notices for scrutiny may be quashed at the appropriate forum.
Third, you need to prove your source of income before marriage and your grandma's source of saving and both put together should be sufficient for the disputed marriage expenses. This will make your case strong. Once it is proved then the onus lies on the Assessing Officer to prove that the expenses has been incurred by your father only.
Fouth the AO cannot act arbitrarily and according to his whims and fancies. I suggest you to go for an appeal before the Inc Tax Appeallate Tribunal and you will surely win the case.
Fifth how did the file got transferred from original ward to the current ward.
Best wishes,
Sugata Shankar Roy,
Kolkata
Shanoo
(Querist) 03 September 2009
Thanks Sugata,
the file was transferred by sending a letter that please transfer to ward 7(1) and the signature on the letter is not matching the ITO at 7(1) was very shrewd and not ready to listen and he got retirement last year.
sugata please advise how i can transferr my father's file in the original ward as the ward 7(1) is of industries and they are not aware about the procedures and accounting of a commission transporter and original ward is related to transporters accounts where the original assessment had been done and then immediately the reassessment had been ordered from 7(1).
I also want to know that without giving any reasons can an ITO can make any reassessment and also before any order of original assessment.
and i also want to know whether istridhan can be added to father income which daughter had received during her marriage from inlaws and guests and family relations and under which secttion of income tax it is added.
Sugata Shankar Roy
(Expert) 04 September 2009
First, Ordinarily, a file cannot be transferred unless there is a change in jurisdiction of the assessee.
The change of jurisdiction takes place if there is a change of address, change of employment, nature of income etc.
It is not clear who has asked for transfer of file and the reason of transfer.
The migration can be done by the ITO, if circumstances demand or may be done on the basis of request of assessee.
Second, you have to ask for reason of reassessment and ask for a certified copy. It is compulsory the ITO has to record the reason of reassessment and can issue notice only if the Joint Commissioner or Additional Commissioner of Income Tax is satisfied on the reasons recorded by the ITO that it is a fit case for issue of such notice.
Third a notice issued without prior sanction is invalid.
If there is any lapse you should challenge the notice.
Fourth, an ITO should show cause why the return will not be reopened on the basis of information received by him. The recourse can be taken to sectionn147, provided fresh material has been received by the ITO after the expiry of limitation fixed for framing the original assessment.
Fifth, the istridhan cannot be added to father income. As discussed before it has to be proved that it has been received from relatives at the time of marriage.
Sugata
Shanoo
(Querist) 19 September 2009
Thank you sir for the information it will be great help for me.riven
