Non u/s 139(5) and 272(B)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2010 Sir's My uncle receievd this notice from IT authorities with subject "Entering into financial transactions-non quoting of PAN u/s 139A(5) and 272B of the Income tax act 1961"
The letter is vague where is does not mention the finacial transaction but just the FY.where the PAN was not quoted and they got info through AIR, my uncle, he is not aware of any such transaction. a proforma is attached which is also a little vague becasue it askes to tick the relevent points asking about whether a PAN no. exists and then there is one point asking for the details of the Income tax return of that particular FY.

what should be done!
1) Should a reply be sent in the proforma!
2) Should we give them the ITR details of that year(which he did file before time)
or just send them the PAN card details.

I read an article where it said that this is the new way of the IT dept to harass tax payers by quoting that they have info through AIR.

Please help!!

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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24 September 2010 I think it is system error of IT dept. bcoz now days all It Offices are computerized no one can do any thing manualy so just go to the Income tax officer. Write him a simple letter about it that he did not do such transaction and encl.Copy of ITR and bank statetment( If Business Income) or Form 16 (If Salried Person)

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2010 Sir, what if a transaction does exist, because the FY is 2 years back, he does not remember the transactions.

without the details provided by the dept. what should be the reply to the authorities!

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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04 August 2024 Receiving a notice under Sections 139A(5) and 272B for non-quoting of PAN can be concerning, especially if the details are vague. Here’s how to address this situation effectively:

### **Understanding the Notice:**

1. **Sections Referenced:**
- **Section 139A(5):** This section mandates that PAN must be quoted in certain financial transactions. Failure to do so can result in penalties.
- **Section 272B:** Provides for penalties for failure to comply with the requirements related to PAN.

2. **Nature of the Notice:**
- **AIR Information:** The notice is based on information received through the Annual Information Return (AIR), which captures large transactions and requires PAN details.
- **Vagueness of the Notice:** It may not specify the exact transaction or the amount, which can make it challenging to respond.

### **Steps to Address the Notice:**

#### **1. **Review and Gather Information:**

- **Check Records:** Review the records for the specified financial year (FY) to identify any transactions where PAN might not have been quoted. This includes bank statements, financial transactions, and any investment records.
- **ITR Details:** Confirm that the Income Tax Return (ITR) was filed for the relevant FY and ensure that it is accurate and complete.

#### **2. **Replying to the Notice:**

- **Complete the Proforma:**
- **PAN Details:** Provide the PAN card details as requested.
- **ITR Details:** Mention that the ITR for the specified year was filed and provide the relevant details.
- **Transaction Details:** If possible, list out the financial transactions for that FY, especially if you can identify any transaction that might have been reported in AIR.

- **Clarify and Confirm:**
- **Explain Non-Recall of Transactions:** State that, based on available records, no specific transaction was found where PAN was not quoted. If transactions are not recalled, mention that due diligence was observed in filing ITR and maintaining records.
- **Compliance Statement:** Include a statement affirming that PAN was quoted wherever required and proper compliance was maintained.

#### **3. **Draft a Response:**

Here’s a sample response that you could tailor according to your specific details:

---

**[Your Name]**
**[Your Address]**
**[City, State, PIN Code]**
**[Date]**

**To,**
**The Assessing Officer**
**Income Tax Department**
**[Address of the IT Department Office]**

**Subject: Response to Notice under Sections 139A(5) and 272B**

**Respected Sir/Madam,**

I am writing in response to the notice issued under Sections 139A(5) and 272B regarding the non-quoting of PAN for financial transactions as per the information received through the Annual Information Return (AIR) for the financial year [FY].

I would like to provide the following details:

1. **PAN Details:** My PAN is [PAN Number].
2. **ITR Filing:** I confirm that the Income Tax Return for the financial year [FY] was filed on time, and all necessary details were accurately reported.
3. **Transaction Details:** After reviewing my records, I do not recall specific transactions for which PAN was not quoted. However, I have adhered to all requirements and maintained proper documentation.

Please find attached copies of my PAN card and a summary of the ITR filed for the mentioned financial year for your reference. I kindly request you to review the provided information and confirm if any additional details or clarifications are required.

Thank you for your understanding and cooperation.

**Sincerely,**
**[Your Name]**
**[Contact Information]**

---

### **4. **Additional Considerations:**

- **Consult a Tax Professional:** If the situation remains unclear or if there are complexities involved, consulting a tax advisor or chartered accountant can provide further clarity and assistance.
- **Follow-Up:** Keep a record of all correspondence with the tax authorities and follow up if necessary to ensure the issue is resolved.

By responding appropriately and providing the requested details, you can address the notice effectively and ensure compliance with tax regulations.