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Notice 143(1)

Gangadhara (Professional) (62 Points)

06 May 2010

Dear Memembers,

I received a letter from central income tax processing department couple of days ago , for the FY 2007-08 (AY 2008-09).

I had filed my returns with in the due date for FY 2007-08,.

The notice that I received show the calculation of about 70 K difference in the tax amount , the reason being :that they have considered the intereset on my housing loan to max of 150000, where as I am actually paying around 400000 (from 2 housing loans).

1 of the house is rented out and the other is being occupied by my parents.

There is also a mistake made in showing the income from (rented out )house property in the ITR that I have filed , if I correct that mistake I have to pay around 5k of tax as opposed to 70 K.

My question is how should I aproach this problem or what should I reply to the notice?

Appreciate your help at the earliest.

Thank

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18 Replies

(Guest)

IN my opinion you should hire any expert or take any CA's advice..... As per the income tax act if you have rented out any house then you can claim full deduction of interest on that house and in case of self occupied home you can claim maximum deduction of rs. 150000.

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Gangadhara (Professional) (62 Points)
Replied 07 May 2010

Thanks Arvind.

BTW does any one have any contact of such person, in and around marathalli , Bangalore.

Feel free to ping me on 9886523105.

Thanks

Amir (Learner) (4016 Points)
Replied 07 May 2010

Dear Sir,

If mistake which you are talking is apparent from the records(like toalling error or same figure reported as different in two places), I mean it doesnot require any additional facts to be known then you can rectify it by way of a Application u/s 154 i:e rectification of mistakes apparent from records.

However if correction of mistake requires some additional facts to be disclosed then you could have revised your return till 31.03.2010. But now you cannot......

So I would say go and meet your AO and if he accepts your application u/s 154 then well and good file the application & deposit the necessary tax(Rs.5k) & if not then you should go for the help of a professional.

Dhawal Mohnot (Practicing) (449 Points)
Replied 07 May 2010

154 is a petition and has to be filed on a green sheet with a 2 rupee court fee stamp.

Amir bhai please correct me if i am wrong.

Rachit (Analyst) (913 Points)
Replied 07 May 2010

Dhawal

It is not mandatory to file Application for Rectification u/s. 154 on a green legal paper with Re.2/- cf stamp.

It can be filed on plain white paper without cf stamp

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Nilesh Rudrawar (CA Practice) (28 Points)
Replied 07 May 2010

Hi i will suggest you, donot go for Section 154 it will take too much time. Best way go to attend the hearing with A. O. First you read the notice under which section it has been served & you also require to revise the return for F. Y. 2008 - 09 also. u also require to reconsider the following things :

1) owners of property,

2) devide Interest & principal amounton the basis of ownership,

3) deduct the 30% of actual rent reeived towards repairs & maintenace & deduct interest paid on that hosue property

lot of things require to consider, therefore i suggest go to CA office & rectify the mistake under his guidance.

Thanks.

tapas (Student) (45 Points)
Replied 07 May 2010

Nilesh bhai ,in this case Return can not be revised because ...because period for revising the return has passed away...

best way to make an application by way rectification of mistake u\s154.

Notice U/s 143(1) can be served within one year from end of the relevent assessment year in which is return is filed.

Amit Bajaj (Tax Attorney) (9085 Points)
Replied 07 May 2010

The Intimation u/s 143(1) for A.Y 2008-09 could have been received till 31st march 2010. The intimation if received after 31st march is an invalid intimation you can also challenge it by filing an appeal against it although it will take some time. The best way is to file ractification application u/s 154

Gangadhara (Professional) (62 Points)
Replied 07 May 2010

Hi Amit,

Good point ,

The Intimation is deliveried to my house address on 24th Apr as per the post office stamp on the postal cover.

But the intimation itself has 31/03/2010 as the order date. I do not mind if it takes time :-) , after all I have paid all the taxes due.

Thanks

ABHISHEK (C.A. Final STUDENT) (95 Points)
Replied 07 May 2010

I think the time limit to issue notice is not expired as the notice is dated 31.03.2010 . the time limit given is for issuing notice not for delivering . if i m wrong plz correct me ?

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ABHISHEK (C.A. Final STUDENT) (95 Points)
Replied 07 May 2010

i think the time limit is for issuing intimation not for delivering the intimation so that the appeal cannot be filed against it

Amit Bajaj (Tax Attorney) (9085 Points)
Replied 07 May 2010

The words mentioned in the IInd proviso to section 143(1) are as follows:

Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made.

Now the interpretation of word sent needs to be done here. Sent here must mean sent by the department. If the department sends the intimation on 31st march then it would be valid but if its issued on 31st march but not sent on 31st march itself , it would render the intimation as invalid and not binding on the assessee.

whether or not it is sent on or before 31st march is a question of fact to be decided on the basis of facts availabe like proof of sending which the department should be asked to produce during the hearing of appeal.

The proof will be available if its sent by speed post. But if the proof is not available (for example where it is sent by ordinary post) then it will be a debatable point whether the date of intimation should be considered as date of sending. It will depend upon the judicial conscience of the appeallette authority.

Anyways I feel ractification application is the better option in such case