Notice u/s 221(1) of the Income Tax Act
Sudhir Indapurkar
(Querist) 06 April 2010
This query is : Resolved
One of my clients received notice u/s 221(1) under Income Tax Act on 03/04/2010 with reference to Assessement Year 1990-91 i.e.period of 20 years before.I am handling his file since last 10 years and he has never received any notice for A.Y.90-91.In the opinion of the client there is no unpaid tax liability however he is not having any records for A.Y.90-91.Is there any remedy ?Is there any time limit for issue of such notices?
soumitra basu
(Expert) 06 April 2010
You may ask to the Department regarding details of the demand. Moreover, you may ask to your client whether any litigation was pending before the higher authorities.
Vineet
(Expert) 07 April 2010
You have to check up with the department regarding the pending demand. These demands occur from old demand and collection registers which might not have been updated.
As the department is asking to show cause, you can very well request department to provide the copy of order and demand notice for the demand. However, if they have records with them, the onus will be on the assessee to prove that demand has been paid. You can substantiate you claim by any subsequent order from department allowing the assessee a refund as the department first adjusts outstanding demand against the refund.
