11 December 2018
Mr. X who had turnover of rs 2.80 crore from civil construction filed his return for AY 11-12 u/s 139(1) and same got processed u/s 143(1). He has not filed balance sheet and profit and loss account and audit report with ITR. No further notice for scrutiny. Now notice u/s 148 is received followed by show cause notice for 144. Reason mentioned in both notices is cash deposit in said FY of rs 30 lakhs. No such cash deposit was made and accordingly Reply has been submitted. When we demanded for actual reason for re-opening, it is not reopened for cash deposit rather it is opened based on report from Income tax officer (Investment) which mentioned that assesses has made transaction of rs 3 crores and 10% I.e. of 30 lakhs is taken as profit. In copy of reason AO has applied clause (a) of explanation 2 of Section 147 which is in my opinion for case where no ITR was filed. 31st dec is last date for completion of assessment. Can we challenge reason for reopening as return was filed and processed and AO could have made scrutiny within permissible time u/s 142. Or we should reply based on original notice for cash deposit. It is also noted that AO has rectified all notices which was for cash deposit on his records but no official communication to assessee.
19 December 2018
"When we demanded for actual reason for re-opening" Did you demand this reason after the filing of the return u/s 148?
I would like to see what exactly the notices were and what were your replies including the copy of reason by AO. Also, send the copy of "rectified" notices.
CAclubindia
