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seema (none)     08 December 2012

Reassesment

In a  case of sec 148 where one has to show expenses on marriage   in one's family and its sources  ,what documents are needed to support that a fixed amount was spent on it? Documents /evidence are Bank account,affidavit from relatives regarding their contribution ,cash at hand..

1. Is this enough to prove that fixed amount was spent?If it is, Why the AO not satisfied with it?What else can be given as evidence when we have given all sources to meet the expenses?

2.AO says that in appeal they exempt genuine cases and yours is genuine with evidences so it will be exempted ,is it right? 



Learning

 10 Replies

R RAJAGOPALAN (ADVOCATE)     10 December 2012

 

1. Is this enough to prove that fixed amount was spent?If it is, Why the AO not satisfied with it?What else can be given as evidence when we have given all sources to meet the expenses?

You've to state the expenses actually incurred for  the usual, customary marriage expenses in your community; such as,

a) on clothes for the bride/bridegromm, relatives, family etc

b) on marriage processions,

c) on feasts,

d) on jewellery & other valuable articles;

e) on invitations- printing/delivery of the invitation cards,

f) on photography/videography,

on pre-marriage functions,

g) on post marriage functions, 

h) on hall rents/accommodations,  etc, etc.

For these the marriage albums/videos will give some indications. It is not enough that you state a lump sum as spent for the entire marriage functions; may your expenditure statement be as detailed as possible; do not withold relevant details. You may be having the Bills received for at at least some of these heads of expenses; if not, try to get confirmation letters /certified copies of your accounts in their books.

To explain the sources for the funds to meet these expenses, you may have to furnish a detailed statement of the receipts, with the dates, names & addresses of the fund providers, their confirmation letters explaining their own immediate sources for the funds, bank staements etc.

2.AO says that in appeal they exempt genuine cases and yours is genuine with evidences so it will be exempted ,is it right?

It depends on the extent to which you can prove that your explanation is genuine. A lot depends on the peculiar facts of each case. You may take the assistance of a good tax practitioner at the assessment stage itself.

1 Like

Sandeep Bagmar R (Advocate)     14 December 2012

There is also option of challenging the notice under section 148 if there are no reasons mentioned for reopening of assessment and also if the reopening is mere change of opinion.

Vineet (Director)     16 December 2012

ask a copy of reasons recorded for reopening. it should be based on concrete finding and not on presumptions.

seema (none)     18 December 2012

what happens in case of arbitrariness in procedure adopted?Reassessment cancelled and freash proceedings started?

R RAJAGOPALAN (ADVOCATE)     18 December 2012

Query: what happens in case of arbitrariness in procedure adopted?Reassessment cancelled and freash proceedings started?

Reply: Arbitrariness in procedure may vitiate the very reassessment, & can be raised as a ground in the appeal against the reassessment.
The AO can lawfully drop the Reassessment proceedings pending if its initiation was defective, & regularise it by re-initiation. The full facts are crucial.

seema (none)     18 December 2012

Reinitiation further delays the matter...what is the use of it?

Sandeep Bagmar R (Advocate)     18 December 2012

It is advisable to file a writ petition and ask for quash of the reassessment order. And also get a finding from the High Court on merits of the case. No doubts High Court will not  decide on merits of the case but this will be a better option rather than explaining it to the AO. High Court in many cases have come hard on the IT dept for issuing arbitrary 148 notices.

If there is time available of 4 or 6 yrs as the case may be, AO still has the right to issue fresh 148 notice.

seema (none)     18 December 2012

1.That means if court quashes the assessment and limitation period is over,reinitiatiioin can not take place?

R RAJAGOPALAN (ADVOCATE)     19 December 2012

Query: 1.That means if court quashes the assessment and limitation period is over,reinitiatiioin can not take place?

Reply: Subject to any specific direction in the Court's Judgment itself, no re-initiation is possible if time limit is over.

Sandeep Bagmar R (Advocate)     19 December 2012

Court will not extend the time limit for the AO to reinitiate fresh reopening. Once 4 or 6 years have lapsed reopening cannot be done.


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