Reassessement

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mehul kishnani (Querist)
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17 March 2012 letter has been sent to assessee in Feb-2012 for AY 2005-06 from AIR (for some financial instruments) requiring him to furnish copy of pan card and whether he has filled return or not and if so then submit acknowledgement for the same. However assessee not responded the letter. After 25 days assesseee got the notice u/s-148 for reassessment for the AY 2005-06.
My question is that can AO re-open the case base on the above letter?
just for information no return of income has been filled for the Ay-2005-06.

Thanks

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 March 2012 The AO has some information about the investment and once the information is available with the AO and as no return has been filed the entire income for the year can be treated as income escaped. You have also failed to file the necessary information as required by the A.O or as the case may be if the previous letter was from AO and you have not replied then again you are inviting problem of penalty for non compliance of notices from AO.

In case you have no income then file NIL return in response to notice u/s 148 as the AO have full power to re-open the case but your have not filed the original return and no assessment has been done so this is not the case of re-open but it is the case of income escaping so the AO can do it.

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