Notice u/s 148 for ay 2009-10
vishnu123
(Querist) 22 October 2016
This query is : Resolved
One of my Clint have purchased a property on October 2007 for Rs. 656000 +44000(registration charges) = Rs. 7 lac. Sold that property for Rs. 1050000/-in March 2009. He did not file ITR that time. Before sell that property invest Rs. 125000/- for finishing & furnishing of that property in Dec-2007.
ITO send him a notice u/s 148. he is unable to prove sources of purchase because somebody else made this transaction on his name. I want to know how much tax & penalty they will charge on him. Is there any way to save or minimise tax & penalty.
Dear Sir, Somebody else means- one of his known earn profit by sell- purchase of this property on his name. Actually that time my Client was not aware about rules & regulations of Income tax.
Guest
(Expert) 22 October 2016
Mr. Vishnu,
There is a clear contradiction in your description. On one hand you said, "One of my Clint have purchased a property on October 2007," while on the other you have stated, "somebody else made this transaction on his name"!
By the way, what is your own business, service or profession?
Guest
(Expert) 22 October 2016
Further, if somebody else made this transaction on his name and he is unable to prove sources of purchase because, the question arises, was that property offered to him as a bribe?
vishnu123
(Querist) 22 October 2016
Dear Sir, Somebody else means- one of his known earn profit by sell- purchase of this property on his name. Actually that time my Client was not aware about rules & regulations of Income tax.
Rajendra K Goyal
(Expert) 22 October 2016
If he is able to show that he borrowed funds from said somebody else, there can be some relief.
He was liable to pay short term capital gains tax on the profit now for which late filing of return penalty, tax with interest and penalty on this has to be paid, how much need to be decided by assessing authority.
If sources of fund not available he can be penalized as per black money provisions quantum to be decided by assessing officer as per facts.
Discuss in detail with some senior lawyer / CA in taxation.
vishnu123
(Querist) 22 October 2016
Thanks for reply- But please tell Time barred rule of IT department is applicable in this case. Because purchase date is Oct 2007 & as per rule it is more then 7 year old transaction. ITO issue notice for Transaction of Rs. 10.50 lac for AY 2009-10.
Rajendra K Goyal
(Expert) 22 October 2016
Discuss in detail with local tax consultant / CA.
Guest
(Expert) 22 October 2016
Not a satisfactory reply.
You have not answered my question, "what is your own business, service or profession?"
Moreover, your supplementary question in itself is a proof of your query being of academic nature.
Ms.Usha Kapoor
(Expert) 23 October 2016
A. Send the query to my email.ID ushakapoor310@rediffmail.com. I'd be able to give correct reply.
Rajendra K Goyal
(Expert) 23 October 2016
Notice under section 148 can be issued within a period of 4 (*) years from the end of the relevant assessment year. If the escaped income is Rs. 1,00,000 or more and certain other conditions are satisfied, then notice can be issued upto 6 years from the end of the relevant
assessment year.
visit:
http://www.incometaxindia.gov.in/Tutorials/33-various%20assessments.pdf
Notice is issued u/s 148 on many accounts.
Can visit:
http://taxguru.in/income-tax/time-limits-issuance-notices-orders-sections-income-tax-act-1961.html
