Notice in respect of a.y.2013-14

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bhavik mehta (Querist)
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21 November 2015 Dear sir,

In one of the case of mine, I received a notice for the non-filing of ITR for the A.Y.2013-14.

The notice is issued due to share market transactions and online AIR details available with Income tax department.

Is notice to be considered u/s 142(1) and can assessee file return accordingly with reference to the notice received? The notice did not put a reference of any section.

Further, in case of there is Short term loss and did not claim for carryforward, can assessee claim as he deemed not liable to file Income tax return u/s 139(1)?

Please give your best opinion.

Thanking you in advance.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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21 November 2015 The letters are being issued to non filers and filers quoting the security/commodity transactions and AIR information. In your case , it may be for non filing though terhe are transactions which warrant filing of ITR. So collect the bank account copies,Account transaction summary from the Dealer/Stock Broker and check whether any profit on speculative / Non speculative transactions arise.Consider the payments from Bank also.Accordingly prepare ITR wherein you can show the Profit or loss. The loss, however, can not be carried forward.Check Form 26 AS also.Then again check under " Compliances" tab in IT Website for the client and after filing of ITR, give " response" under compliance" tab. Instead of filing of ITR, reply letter can also be given if there is no profit and the taxable income is below the limits or loss.

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bhavik mehta

bhavik mehta (Querist)
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21 November 2015 Thank you Very much sir.

Its quite helpful guidance.

Sir, further is online filing of return is possible , practically for A.Y.2013-14?
Or paper filing is preferable.?

Thanks..

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bhavik mehta

bhavik mehta (Querist)
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21 November 2015 And sir, what I understand is it is a notice u/s 142(1), is it correct na?

CA ROHIT JAIN

CA ROHIT JAIN (Expert)
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21 November 2015 You should file ITR in response to notice mentioned the communication reference number. However, It is advised not to file the ITR if the Income was below the taxable limit. Since you wont get to carry forward the loss anyway.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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21 November 2015 Section will be quoted invaraiably. That could be a letter generally sent to non filers. Practically online return is not possible if u select the option for 139 section. Hence put sec 142 there with letter no and date