Letter for supply of information

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 July 2015 A assessee has been recived a letter from Income Tax Department ( without Section mentioned ) for Supply of information demanding I.T. Return , Computation , B/s and P & L etc. for the A.Y 2009-10 on 15/07/2015. The assessee is regularly filed his I.T. Return also filed the return for the A.Y 2009-10 on 15/12/2009. The reason behind for issue of letter is cash deposit more than 10 lakh. Should we reply ? In which section the Department call the Information ? What conquencies if not respond ? thanks in advance .

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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20 July 2015 Yes you should reply and file the documents otherwise you will invite penalty for non compliance.

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2015 it is letter without any section define. How could be penalty imposed for non compliance ? Penalty imposed where non compliance of notice only.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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02 August 2024 When an assessee receives a letter from the Income Tax Department requesting information such as Income Tax Returns, Computation Statements, Balance Sheets, and Profit & Loss Accounts, it's essential to address the request promptly and accurately. Even if the letter does not specify a section, it's crucial to respond appropriately.

### **Steps to Respond to the Income Tax Department’s Request**

**1. **Understand the Context**:
- **Reason for Inquiry**: The letter indicates that there is an inquiry due to cash deposits exceeding ₹10 lakh. This could be part of the department's scrutiny or investigation related to high-value transactions.

**2. **Identify the Applicable Section**:
- **Section 133**: Generally, a request for information without a specific section mentioned could be under Section 133 of the Income Tax Act, 1961, which allows the Income Tax Department to call for information from any person.
- **Section 142(1)**: If it is a detailed scrutiny, it might be under Section 142(1), which allows the Assessing Officer to call for documents and information to verify the return of income.

**3. **Prepare Your Response**:
- **Compile Documents**: Gather the requested documents, including:
- Income Tax Return for AY 2009-10
- Computation Statement
- Balance Sheet
- Profit & Loss Account
- **Write a Formal Response**: Draft a letter to the Income Tax Department providing the requested documents. Ensure that you clearly reference the original letter and indicate that you are complying with their request.

### **Sample Response Letter**

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**[Your Name/Your Company Name]**
**[Your Address]**
**[City, State, PIN Code]**
**[Email Address]**
**[Phone Number]**

**Date: [DD/MM/YYYY]**

**To,**
**The Income Tax Officer**
**[Office Address of the Income Tax Department]**
**[City, State, PIN Code]**

**Subject: Response to Information Request for AY 2009-10**

**Dear Sir/Madam,**

This is in reference to your letter dated [Date of the Letter], requesting information related to our Income Tax Return for the Assessment Year 2009-10.

We have enclosed the following documents as requested:
1. **Income Tax Return for AY 2009-10**
2. **Computation of Income for AY 2009-10**
3. **Balance Sheet as of [Date]**
4. **Profit & Loss Account for the period ended [Date]**

We confirm that these documents pertain to the relevant assessment year and reflect the true and fair view of our financial transactions. We request you to kindly acknowledge receipt of these documents and let us know if any further information or clarification is required.

Thank you for your attention to this matter.

**Yours sincerely,**

**[Your Signature]**
**[Your Name/Your Company Name]**

---

**4. **Consequences of Non-Compliance**:
- **Penalty**: Failure to respond to the Income Tax Department’s request can lead to penalties under Section 272A(1) of the Income Tax Act, 1961, which can be up to ₹200 per day of default.
- **Further Scrutiny**: Non-compliance may trigger further scrutiny and potential penalties, additional interest, or other legal consequences.
- **Prosecution**: In severe cases, continued non-compliance can lead to prosecution under various sections of the Income Tax Act.

**5. **Respond Promptly**:
- **Timely Response**: Responding to such requests within the stipulated time frame is crucial to avoid penalties and additional scrutiny. If you have already complied, ensure you have records of your submission.

**6. **Consult a Tax Professional**:
- **Expert Advice**: For complex cases or if you have doubts, consult a tax advisor or legal professional to ensure that your response is appropriate and complete.

By adhering to these guidelines and ensuring a timely and accurate response, you can effectively manage the request from the Income Tax Department and avoid potential penalties or issues.