Objection against notice

Karthik.V.Kulkarni (Chartered Accountant) (594 Points)
Replied 21 January 2016

Yes, if you intend to object to the reason for re opening assessment you can clearly in your letter to drop proceedings insert word object instead of using request or plead. Requesting and pleading is different from objection. Thus file an objection letter with respect to notice issued.

Pragya (CHARTERED ACCOUNTANT) (104 Points)
Replied 22 January 2016

Hello karthik,

I know it is better to write object word. But I am asking if it is mandatory then where it is written? Is it written under Act or this is just your advise. Actually he is not allowing me to file objection again. Thats why it is very much important for me to get him considered that drop preccding means objection. I need disposal of objection for filing writ in high court.

karan jit singh (Consultant) (1299 Points)
Replied 22 January 2016

Originally posted by : Pragya
	Hello all, My client has received a notice under section 147 for income escapement, reason being non disclosure of sale of immovable property. But my client has disclosed all details accurately hence I submitted a letter with subject "request to drop proceeding" in which i have mentioned that since reason is invalid hence notice issued is vois ab initio. I gave reference of all case laws in the letter which says that reason to believe must exist. Further I approached to JCIT and Pr. Commissioner as well. Now A.O has issued a notice demanding further details. When I asked him to atleast dispose of my application he said that I have not filed any objection. He said "request to drop proceeding" does not mean objection, you need to write objection word in application. Is it mandatory to write such word? or is there any prescribed format of filing objection? And is there any time limit to file objection? can I file again now? Please reply

HI pragya,

first of all I am drafting reply for your query in respect of nnotice under section 147.

I defend your case and I agree that JCIT is raising unneccessary debates.
Secondly, you can't hold JCIT or AO to further inquire the matter as any information is required by him should be complied.

It is not neccessary to add such word- as it is not perquisite of application. Objection can be filed if you are disagree with the fact raised by assessee.

Time limit prescribed within notice.

Pragya (CHARTERED ACCOUNTANT) (104 Points)
Replied 23 January 2016

Hello Karan Jit,

Thanks for your reply. Yes it is not mandatory but still i filed objection again mentioning the same word. One more doubt I have now you said that I cant hold JCIT and AO for making further enquiry. But I have read some case laws that AO can not verify any other income for which reasons have not been recorded. I heard that CBDT has issued circular about this. Do you have any idea?

karan jit singh (Consultant) (1299 Points)
Replied 24 January 2016

Originally posted by : Pragya
	Hello Karan Jit, Thanks for your reply. Yes it is not mandatory but still i filed objection again mentioning the same word. One more doubt I have now you said that I cant hold JCIT and AO for making further enquiry. But I have read some case laws that AO can not verify any other income for which reasons have not been recorded. I heard that CBDT has issued circular about this. Do you have any idea?

yes, the reasons you are talking about is not the reasons which were mentioned in notice. The reasons are recorded by AO in his assessment file for audit and further proceeding purpose.

Pragya (CHARTERED ACCOUNTANT) (104 Points)
Replied 25 January 2016

Sorry, but I did not get you. Is there any circular ? I mean recorded reasosn based on which notice U/s 148 was issued is " Assessee has sold an immovable property but he has not shown any capital gain in his return, he has filed his return by declaring business income." But in actual assessee has disclosed sale and claimed exemption U/s 54F. Now AO is demanding nature/sources of income, bank satements, details of family members, personal expenses etc. My question is that can AO demand any other detail which is not related to the reasons? I read case laws which says no, but I did not find any circular regarding this. If you know about it please explain.