Scrutiny notice under section 143 and 142
sandeepsingh
(Querist) 08 December 2012
This query is : Resolved
Hello
I had purchased a property in joint name with my wife in 2004 at 1600000 and sold that off in sep 2010 for 5100000 my capital gains comes to around 29 lakhs. I had paid for the property from my pocket and my wife nowhere has my wife contributed in anyway. I did not file returns for FY 2010-11 and my wife filed in 2012 march. the property was not declared. My wife has recieved a scrutiny notice under section 143 and 142 asking for details like bank accounts, properties owned, sold and bought. On contacting a CA we came to know that AIR has mention of the sold property and CA is asking for a sum of 2 lakhs for closing this enquiry. . i had reinvested 80% of the capital gains in a new underc onstruction.property again in joint name.
i had few queries.
BY what time does the AO have to finish this proceedings.
In case i pay the CA the money , will i face a problem when i register the new property next year.
What would be the best way for addressing the issue.
Appreciate your help in this regard
Raj Kumar Makkad
(Expert) 08 December 2012
1. There is no time limit for finalization.
2. No, but I dont suggest you to pay illegal gratification rather contest the case on merits.
3. As replied, you should legally face the issue. As you have already reinvested 80% amount in the house property so your liability to pay income tax is very low and it should be duly paid.
R.V.RAO
(Expert) 07 March 2014
Time limit for completion of assessments and reassessments(1) No order of assessment shall be made undersection 143 or section 144 at any time after theexpiry of-(a) two years from the end of the assessment yearin which the income was first assessable; or(b) one year from the end of the financial year inwhich a return or a revised return relating to theassessment year commencing on the 1st day ofApril, 1988, or any earlier assessment year, is filedunder sub-section (4) or sub-section (5) of section139,whichever is later.(2) No order of assessment reassessment orrecomputation shall be made under section 147after the expiry of one year from the end of thefinancial year in which the notice under section148 was served.....
an assessing officer may serve the following notices:
notice under section 148 for Income Escaping Assessment under 147.
Notice under 148 can be served on an assessee:
Income only from India below Rs.10 Lakh,upto four years from the relevant assessment year
Income only from India above Rs.10 Lakh, six years from the relevant assessment year
Income outside India ,Sixteen Years from the relevant assessment year.
best way to solve problem.meet up the assessing officer and your frank admission of what ever happened if explained, ITO will try his best to mitigate the rigor of penalties to a little extent .
this approach also helps you next year new property regn.,as sometimes IT acquisition wing may serve notice to find out source of inv. for new properties registered.(but usually Rs30 lacs and above properties ).
am sure by now god helped you out of the situation.sorry iam late in responding. i joined LCI recently.
