It notice
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 September 2014
i filled a return for the year 2008-09 within due date showing income of Rs.1,20,000/- it was filled u/s 44AE showing a net profit of 5% but in august,2014 on the basis of AIR ITO has issued a notice. please let me know whether this notice is within due date. please guide me.
04 September 2014
Notice issued under which section?
Notice u/s 143(2) will be time barred.
Notice u/s 143(2) will be time barred.
02 August 2024
To determine whether the notice issued by the Income Tax Officer (ITO) is within the due date and to understand your options, let's look at the key points regarding the assessment and notice periods under Indian tax laws.
### 1. **Assessment and Notice Periods**
**Section 143(2) and 148 - Time Limits for Notices:**
- **Section 143(2)**: If the Income Tax Department believes that the return filed is not accurate, they can issue a notice under Section 143(2) for scrutiny. For assessments up to AY 2008-09, the notice under Section 143(2) should be issued within six months from the end of the financial year in which the return was filed. For FY 2008-09, the notice should have been issued by September 30, 2009.
- **Section 148**: If the Income Tax Department believes that income has escaped assessment, they can issue a notice under Section 148. For assessments under this section, the notice can be issued within four years from the end of the assessment year if it is a case of income escaping assessment.
### 2. **Specific Case: AY 2008-09**
- **Filing Date**: If the return for AY 2008-09 was filed within the due date, then the assessment could be scrutinized within the time limits specified by the law.
- **Notice in August 2014**: Since the assessment year is 2008-09, the relevant financial year would be April 1, 2007, to March 31, 2008. The period for issuing notices under Section 143(2) would end on September 30, 2009. Therefore, if a notice is issued in August 2014, it is beyond the six-month period for issuing a notice under Section 143(2) for that assessment year.
### 3. **Possible Reasons for the Notice**
- **Income Escaping Assessment (Section 148)**: If the notice is issued under Section 148, it is for income that escaped assessment. For AY 2008-09, the notice under Section 148 should be issued within four years from the end of the assessment year, which means up to March 31, 2013. If the notice is from August 2014, it is beyond this period unless there are specific conditions or reasons for extending this period.
- **Audit Information Report (AIR)**: Notices based on AIR reports are typically issued if there is a discrepancy or undeclared income found from AIR data. The issuance of such a notice should still comply with the statutory time limits.
### 4. **Actions to Take**
1. **Verify the Notice**: Check the specific section and details mentioned in the notice. If it’s under Section 143(2), it is likely invalid due to the lapse of the period. If it's under Section 148, ensure it’s within the legal time frame.
2. **Respond to the Notice**: If you receive a notice, respond promptly with all relevant information and documents to address the query or discrepancy.
3. **Consult a Tax Professional**: Given the complexity of tax notices and the potential for legal issues, consulting a tax professional or Chartered Accountant is advisable to review your case and provide guidance on the proper course of action.
4. **Review Legal Provisions**: Ensure you understand the legal provisions related to the notice period and your rights. The notice should generally be scrutinized to ensure it complies with the statutory requirements.
### Summary
For AY 2008-09, a notice issued in August 2014 is beyond the normal period for notices under Section 143(2). If the notice pertains to income escaping assessment under Section 148, it should have been issued by March 31, 2013. Review the notice details and consult with a tax professional to handle the situation appropriately.
### 1. **Assessment and Notice Periods**
**Section 143(2) and 148 - Time Limits for Notices:**
- **Section 143(2)**: If the Income Tax Department believes that the return filed is not accurate, they can issue a notice under Section 143(2) for scrutiny. For assessments up to AY 2008-09, the notice under Section 143(2) should be issued within six months from the end of the financial year in which the return was filed. For FY 2008-09, the notice should have been issued by September 30, 2009.
- **Section 148**: If the Income Tax Department believes that income has escaped assessment, they can issue a notice under Section 148. For assessments under this section, the notice can be issued within four years from the end of the assessment year if it is a case of income escaping assessment.
### 2. **Specific Case: AY 2008-09**
- **Filing Date**: If the return for AY 2008-09 was filed within the due date, then the assessment could be scrutinized within the time limits specified by the law.
- **Notice in August 2014**: Since the assessment year is 2008-09, the relevant financial year would be April 1, 2007, to March 31, 2008. The period for issuing notices under Section 143(2) would end on September 30, 2009. Therefore, if a notice is issued in August 2014, it is beyond the six-month period for issuing a notice under Section 143(2) for that assessment year.
### 3. **Possible Reasons for the Notice**
- **Income Escaping Assessment (Section 148)**: If the notice is issued under Section 148, it is for income that escaped assessment. For AY 2008-09, the notice under Section 148 should be issued within four years from the end of the assessment year, which means up to March 31, 2013. If the notice is from August 2014, it is beyond this period unless there are specific conditions or reasons for extending this period.
- **Audit Information Report (AIR)**: Notices based on AIR reports are typically issued if there is a discrepancy or undeclared income found from AIR data. The issuance of such a notice should still comply with the statutory time limits.
### 4. **Actions to Take**
1. **Verify the Notice**: Check the specific section and details mentioned in the notice. If it’s under Section 143(2), it is likely invalid due to the lapse of the period. If it's under Section 148, ensure it’s within the legal time frame.
2. **Respond to the Notice**: If you receive a notice, respond promptly with all relevant information and documents to address the query or discrepancy.
3. **Consult a Tax Professional**: Given the complexity of tax notices and the potential for legal issues, consulting a tax professional or Chartered Accountant is advisable to review your case and provide guidance on the proper course of action.
4. **Review Legal Provisions**: Ensure you understand the legal provisions related to the notice period and your rights. The notice should generally be scrutinized to ensure it complies with the statutory requirements.
### Summary
For AY 2008-09, a notice issued in August 2014 is beyond the normal period for notices under Section 143(2). If the notice pertains to income escaping assessment under Section 148, it should have been issued by March 31, 2013. Review the notice details and consult with a tax professional to handle the situation appropriately.
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