Intomation u/s 143(1)
This query is : Resolved
30 August 2013
I have received an intimation U/s 143(1) of the Act wherein Speculation loss is considered as income and demand raised. I have made rectification online & received order u/s 154 of the Act but there is no change in order. How to draft appeal.
30 August 2013
Then first of all you should submit letter to local income tax department.
30 August 2013
I think you may be used such Speculation loss to set off with other heads income. Is it correct? then department is correct and issuing of demand is proper and correct, because of Speculation loss only to be set-off with the speculation profit only.
So first confirm the above aspect and then think about appeal if you are correct.
OM SAI SRI SAI JAI JAI SAI
So first confirm the above aspect and then think about appeal if you are correct.
OM SAI SRI SAI JAI JAI SAI
31 August 2013
We have not set off loss under other head. It is carry forward.Even in intimation also they have carried forward speculation loss.
01 August 2024
If you've received an intimation under Section 143(1) where speculation loss was incorrectly considered as income and a demand was raised, and despite filing a rectification under Section 154, there was no change in the order, you can consider filing an appeal. Here’s how you can approach drafting an appeal:
### **1. Drafting the Appeal**
**1. **Prepare an Appeal Memorandum:**
- **Title**: State "Appeal Against the Order Under Section 143(1) and 154".
- **Date**: Include the date of drafting the appeal.
- **To**: Mention the relevant appellate authority, typically the Commissioner of Income Tax (Appeals) or CIT(A).
**2. **Include Key Sections in the Memorandum:**
- **Introduction:**
- **Your Details**: Full name, PAN, address, and details of the relevant assessment year.
- **Assessment Details**: Reference to the intimation notice under Section 143(1) and the order under Section 154.
- **Background**: Briefly describe the nature of the error and the subsequent rectification request.
- **Grounds of Appeal:**
- **Error in Intimation:** State that the speculation loss was incorrectly treated as income. Provide details of the loss incurred and the correct treatment under tax laws.
- **Rectification Details:** Explain that you filed a rectification request under Section 154 to correct this error, but the order remained unchanged.
- **Carry Forward of Loss:** Highlight that the speculation loss was carried forward correctly and was not set off against any other head of income.
- **Reliefs Sought:**
- **Correction of Income**: Request that the speculative loss be correctly adjusted and the income be recalculated.
- **Revised Demand**: Seek a revised demand reflecting the correct computation of income and tax.
- **Supporting Documents:**
- **Intimation and Rectification Orders**: Attach copies of the intimation under Section 143(1) and the rectification order under Section 154.
- **Proof of Loss**: Include documentation supporting the speculative loss and its carry forward.
- **Correspondence**: Attach any correspondence related to the rectification request.
- **Prayer for Relief:**
- Clearly state your request for relief from the incorrect demand and the revised computation of tax liability.
- **Signature:**
- **Signature**: Sign the appeal memorandum.
- **Name and Designation**: Mention your name and designation (if applicable).
### **2. Filing the Appeal**
**1. **Submit the Appeal Memorandum:**
- **Online Submission:** If your jurisdiction allows, you may file the appeal online through the Income Tax e-Filing portal.
- **Manual Submission:** Otherwise, submit the appeal memorandum to the Commissioner of Income Tax (Appeals) or the relevant appellate authority.
**2. **Follow-Up:**
- **Acknowledgment**: Obtain an acknowledgment of the appeal submission.
- **Check Status**: Regularly check the status of your appeal through the portal or follow up with the appellate authority.
### **3. Considerations**
- **Consult a Tax Professional:** If you’re unsure about drafting the appeal or navigating the process, consider consulting a tax professional or Chartered Accountant (CA) for assistance.
### **Sample Appeal Memorandum Outline**
---
**[Your Name]
[Your Address]
[City, State, PIN Code]
[Email Address]
[Phone Number]**
**To**
**The Commissioner of Income Tax (Appeals)
[Address of CIT(A)]
[City, State, PIN Code]**
**Date: [Date]**
**Subject: Appeal Against the Order Under Section 143(1) and 154 for Assessment Year [Year]**
**Dear Sir/Madam,**
**1. Introduction:**
I, [Your Name], PAN [Your PAN], residing at [Your Address], am writing to appeal against the intimation under Section 143(1) and the rectification order under Section 154 for the Assessment Year [Year]. The intimation erroneously treated speculation loss as income, resulting in an incorrect demand.
**2. Grounds of Appeal:**
- **Error in Intimation:** The speculative loss of Rs. [Amount] was incorrectly treated as income. The loss should have been carried forward as per tax laws.
- **Rectification Order:** Despite submitting a rectification request under Section 154, the order remained unchanged.
**3. Relief Sought:**
- Correction of the computation to account for the speculative loss.
- Issuance of a revised demand based on the correct income and tax computation.
**4. Supporting Documents:**
- Copy of intimation under Section 143(1)
- Copy of rectification order under Section 154
- Proof of speculative loss
- Correspondence related to rectification
**5. Prayer:**
I request that the appeal be considered and the computation corrected to reflect the correct tax liability.
**Thank you.**
**Sincerely,**
**[Your Signature]
[Your Name]**
---
By following this approach, you can address the issues raised in the intimation and seek the necessary corrections through the appeal process.
### **1. Drafting the Appeal**
**1. **Prepare an Appeal Memorandum:**
- **Title**: State "Appeal Against the Order Under Section 143(1) and 154".
- **Date**: Include the date of drafting the appeal.
- **To**: Mention the relevant appellate authority, typically the Commissioner of Income Tax (Appeals) or CIT(A).
**2. **Include Key Sections in the Memorandum:**
- **Introduction:**
- **Your Details**: Full name, PAN, address, and details of the relevant assessment year.
- **Assessment Details**: Reference to the intimation notice under Section 143(1) and the order under Section 154.
- **Background**: Briefly describe the nature of the error and the subsequent rectification request.
- **Grounds of Appeal:**
- **Error in Intimation:** State that the speculation loss was incorrectly treated as income. Provide details of the loss incurred and the correct treatment under tax laws.
- **Rectification Details:** Explain that you filed a rectification request under Section 154 to correct this error, but the order remained unchanged.
- **Carry Forward of Loss:** Highlight that the speculation loss was carried forward correctly and was not set off against any other head of income.
- **Reliefs Sought:**
- **Correction of Income**: Request that the speculative loss be correctly adjusted and the income be recalculated.
- **Revised Demand**: Seek a revised demand reflecting the correct computation of income and tax.
- **Supporting Documents:**
- **Intimation and Rectification Orders**: Attach copies of the intimation under Section 143(1) and the rectification order under Section 154.
- **Proof of Loss**: Include documentation supporting the speculative loss and its carry forward.
- **Correspondence**: Attach any correspondence related to the rectification request.
- **Prayer for Relief:**
- Clearly state your request for relief from the incorrect demand and the revised computation of tax liability.
- **Signature:**
- **Signature**: Sign the appeal memorandum.
- **Name and Designation**: Mention your name and designation (if applicable).
### **2. Filing the Appeal**
**1. **Submit the Appeal Memorandum:**
- **Online Submission:** If your jurisdiction allows, you may file the appeal online through the Income Tax e-Filing portal.
- **Manual Submission:** Otherwise, submit the appeal memorandum to the Commissioner of Income Tax (Appeals) or the relevant appellate authority.
**2. **Follow-Up:**
- **Acknowledgment**: Obtain an acknowledgment of the appeal submission.
- **Check Status**: Regularly check the status of your appeal through the portal or follow up with the appellate authority.
### **3. Considerations**
- **Consult a Tax Professional:** If you’re unsure about drafting the appeal or navigating the process, consider consulting a tax professional or Chartered Accountant (CA) for assistance.
### **Sample Appeal Memorandum Outline**
---
**[Your Name]
[Your Address]
[City, State, PIN Code]
[Email Address]
[Phone Number]**
**To**
**The Commissioner of Income Tax (Appeals)
[Address of CIT(A)]
[City, State, PIN Code]**
**Date: [Date]**
**Subject: Appeal Against the Order Under Section 143(1) and 154 for Assessment Year [Year]**
**Dear Sir/Madam,**
**1. Introduction:**
I, [Your Name], PAN [Your PAN], residing at [Your Address], am writing to appeal against the intimation under Section 143(1) and the rectification order under Section 154 for the Assessment Year [Year]. The intimation erroneously treated speculation loss as income, resulting in an incorrect demand.
**2. Grounds of Appeal:**
- **Error in Intimation:** The speculative loss of Rs. [Amount] was incorrectly treated as income. The loss should have been carried forward as per tax laws.
- **Rectification Order:** Despite submitting a rectification request under Section 154, the order remained unchanged.
**3. Relief Sought:**
- Correction of the computation to account for the speculative loss.
- Issuance of a revised demand based on the correct income and tax computation.
**4. Supporting Documents:**
- Copy of intimation under Section 143(1)
- Copy of rectification order under Section 154
- Proof of speculative loss
- Correspondence related to rectification
**5. Prayer:**
I request that the appeal be considered and the computation corrected to reflect the correct tax liability.
**Thank you.**
**Sincerely,**
**[Your Signature]
[Your Name]**
---
By following this approach, you can address the issues raised in the intimation and seek the necessary corrections through the appeal process.
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