Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Notice issued u/s 148

gourav gupta (article assistant) (26 Points)

18 September 2015

Dear All,

I have faced with a situation on which I need some clarification.

One of my client filed his return as per the time limit given u/s 139 and pays tax accordingly. After some time his CA filed his revised return for the same FY and claimed refund in the return. AO issued notice u/s 148 and does not processed the refund. Now AO wants him to file his return again as return filed in response to a notice issued u/s 148 after declaring all income. He is a salaried employee and doesn't have any income other bank interest.

Please advise the appropriate step taken in this case and also inform the consequences faced if he again file his return U/s 148.

Thank you in advance for your valuable suggestions.

Reply
Follow
Share

5 Replies

Miss Rinkal (Student) (1309 Points)
Replied 18 September 2015

@ Gourav Gupta:

Can you please explain your problem in depth with exact dates. So that we can provide you with a better solution

Upgrade to CAclubindia Pro. Subscribe Now!

jaya krishna (Chartered Accountant) (262 Points)
Replied 18 September 2015

Ao can issue notice under section 148 if he is believes that your are having any income charged under this act but u are not showing that income in Tax return. Please verify all incomes shows under income return if you feels that all are ok you can asked to file return of the relevant assessment year.... After filling of return you should ask for the copy of reasons recorded for issue of notice u/s 148 and can file objection to the issuance of notice..

Pratik vora (Proprietor - Pratik Vora & Associates) (39 Points)
Replied 18 September 2015

Dear Gorav,

Notice U/s 148 is issued in case of Income escaping Assessment.

It means the shall be having reasons to believe that the income shown by you does not reflect your true income.ie 1)the income is understated, or 2)excess refund has been claimed and paid or 3) Foreign Assets and income from it is not shown, .etc.

So kindly go through all your bank accounts ,26AS & cash register to ensure that all sources of income have been taken into account while filing your return of income.

You have to file a revise return in response to notice u/s 148.

If you are sure enough ,you can file the same return again if there are no changes to be made.

Once you have filed the return in response to notice U/s 148 ,you can take the copy of it along with other relevant documents (to support your computation of Total Income) and present it before your A.O. You can then ask your A.O to give to his "Reasons to beileve " based upon which notice U/s 148 was sent to you.

Thanking You

Pratik Vora

Prasad R (CA Final) (2128 Points)
Replied 19 September 2015

Dear Gourav,

A return u/s 148 could only be issued if the AO has reasons to believe that the Income has escaped Assessment.

File a letter with tyhe AO and request for reasons for issuing notice u/s 148. The AO has to necessarily reply to this notice. In Case the AO doesn't reply to this notice the Assessment could be challenged.

Get the reasons from AO and then proceed accordingly. Revised Tax Return if required could be filed if necessary, once the AO gives you the reason for issuing notice u/s 148.

Thanks and Regards

Prasad R

Rashi Bajaj (CA) (752 Points)
Replied 19 September 2015

First Write a letter stating that the return filed u/s 19(5): revised return) may be considered as return for the purpose of Sec 148. Later, Ask for reasons as stated above. The AO is obligated to provide reasons in writing. If the reasons ar valid, you may need to provide further info as requested by AO.