IT in past 7 years
Querist :
Anonymous
(Querist) 16 April 2010
This query is : Resolved
case history:
my father was a businessman who died in year 1986, after his death the business was taken care of by my elder brother
who died in year 1988.
myself is one of the three legal hieres alive as of today.
and neither of me or my two other younger brothers were involved into my fathers business after his death.
in year 1999 we recieved a notice from the dept. of income tax. claiming the uncleared liablities towards them, which were left uncleared due to my fathers death.
also in past 7 years I have not filed income tax returns, and actually was not doing any business due to illness.
the family's expenses were supported by the rental income from a house in my wife's name.
right now i am not having any copy of the notice or doccuments sent to me by the dept. of I.T.
stil i can recall that it was only 7 years ago tht we had recieved any notice or doccuments from the dept of IT.
NOW it being such a long time , i am willing to know if there s any possiblity of the income tax dept. now claiming any uncleared liability form us.
also as now we are going to sell one of the property which was purchased by my father in auction form the dept. of I.T.
and which is till date in the name of his wife and three sons including myself.
i want to make sure that the dept.of I.T. should not claim any uncleared liabilities at the time of sale of the property.
sir,i need your advice and suggestions in refeernce with this, so as to proceed any further.
awaiting for your response.
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Querist :
Anonymous
(Querist) 16 April 2010
.........
I SUSPECT ON ONE OF MY BUSINESS RIVALS, WHO IS NOW IN A VERY STRONG FINANCIAL POSITION aND KNOWS ALMOST ALL SECRETS OF MY PREVIOUS TRANSACTIONS WITH dept OF IT.
HE MAY TRY TO PUSH THE THINGS AGAINST ME, AS HE DOES NOT WANTS ME TO HAVE CASH IN HAND AT ANY COST, GIVEN THE FACT THAT I MIGHT HURT HIS BUSINESS AS SOON AS I SELL THE PROPERTY AND OWN ENUF MONEY TO COMPETE WID HIM.
IS THERE ANY WAY BY WHICH HE COULD RE OPEN SUCH A OLD AND LOST CASE.
O. Mahalakshmi
(Expert) 16 April 2010
You have to file a suit against the department.
Vineet
(Expert) 16 April 2010
Suit for what Mr Mahalakshmi? It is the IT Department who has uncleared liabilities against the deceased.
Coming to your query, the IT demands pertain to a period more than 24 years old standing in the name of deceased. During this perid a huge restructuring exercise has taken place in department due to which many case records got lost. Further now the demand register is maintained PAN wise and there is all possibility that the demand got lost somewhere in the records.
There are very little chances that this demand will be enforced now as department also takes steps to write off old arrear demands in which records as well as assessees are not traceable.
Having said that legally speaking all the leagl heirs are responsible to meet the outstanding IT liabilities of the deceased to the extent of share of estate they inherit from estate.
As the property stands in name of legal heirs, they can very well dispose it off in any manner and the IT department is not going to claim any sum with regards to father's arrear at the time of sale. In fact IT department can claim this demand in future also but chances are bleak.
So go ahead, enjoy the property and its sale proceeds but don't forget to pay capital gains tax arising out of sale of property.
soumitra basu
(Expert) 16 April 2010
Go to bed and sleep. IT department cannot catch you in any manner. Don't worry,
Querist :
Anonymous
(Querist) 17 April 2010
I SUSPECT ON ONE OF MY BUSINESS RIVALS, WHO IS NOW IN A VERY STRONG FINANCIAL POSITION aND KNOWS ALMOST ALL SECRETS OF MY PREVIOUS TRANSACTIONS WITH dept OF IT.
HE MAY TRY TO PUSH THE THINGS AGAINST ME, AS HE DOES NOT WANTS ME TO HAVE CASH IN HAND AT ANY COST, GIVEN THE FACT THAT I MIGHT HURT HIS BUSINESS AS SOON AS I SELL THE PROPERTY AND OWN ENUF MONEY TO COMPETE WID HIM.
IS THERE ANY WAY BY WHICH HE COULD RE OPEN SUCH A OLD AND LOST CASE.
WHAT DO U THINK MR. VINEET.?
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also given the fact that we have not recieved any notice from the dept of I.T. in past 8-9 years.
is this not the sufficient grounds for us to claim to be free from any kinds of charges payable to I.T.????
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also if they still ask us to pay, in case they show the property to be attached with the dues or whtsoever.
CAN THEY ASK ME TO PAY %INTREST AND FINE OR PENALTIES?????
AS IT WAS TOTALLY THEIR MISTAKE, THAT THEY HAVE NOT SENT ANY NOTICES.
Vineet
(Expert) 17 April 2010
1. I do not think even your business comepetetor will be able to find out this outstanding demand if any. The department will have to dust so many records to trace the demand if at all they intend to do so.
2. Non receipt of any demand notice during last 8-9 years caanot absolve you from the liability. In fact there is a provision that even demands officially written off the records may also be recovered at a later date (though i do not know how, if it could not be done during its currency), just to ensure that government does not legally lose its right on such demand. But never heard any written off demand to be recovered (SIMPLE no body knows that there was one).
3. If there is demand in their records and they somehow trace the property belonging to your deceased father, they have all right to attach the property. If they have already attached the property, an entry to such effect should be made on property card/ revenue records and in that case registrar will not allow you to sell the property. You can find this out through a property search excercise employing a local lawyer. Yes if they collect the demand, it will be with interest which is legally correct.
Having said that, practically I can tell the same thing, relax, there is barely any chance now for any such happening.
