Urgent Query

dear assessment can not be judgement of the assessing officer if want to use his best judgement then he will make assessment under sectn 144 which is best judgement assessment...

and its clearly written in the sectn assessing cn make the A.O cn make the assessment only if he has conclusive evidence.. he can not invoke sec 144 or 147..if  do not have conclusive evidence of doing so..

assessee can claim relief in respect of assessment and interest only by way filing the appeal before commissioner.. but even if he goes for that evn then he has to pay tax n interest provisionally

kindly refer all the sections for more clarificatn..

yes for both

he is liable to penalty only and not for interest

income below taxable limit

filing itr is optional not compulsory so panelty of 5000 not applicable, neither a.o. is demanding it

interest u/s 234 not applicable as neither itr was compulsory and no tax so no interest

Q.2 An assessee was having a total Income from Salary Rs25000/- for AY 2008-09 and had not filed any return but due to Assessment Order U/s147 Return is filed now. ITO has charged Interest U/s234A. Is he liable for Interest?

Ans: Where no return of income has been furnished by an assessee , although the total income exceeds taxable limit [income escaping assessment], the Assessing Officer will pass an Assessment order u/s 147 by issuing a notice u/s 148. The notice can be issued up to 4 years from the end of the relevant assessment year if the escaped income is of any amount or beyond 4 years but up to 6 years from the end of relevant AY if the escaped income is100000 or more.

The tax shall be chargeable at the rate at which it would have been charged had the income not escaped assessment.

The questioner has played with the question. It depend on us how to answer the question. Either we can take taxable income including other head income or simply salary as assessee’s total income giving suitable provisions.

If an assessment is made u/s 147, the assessee cannot be made liable to pay interest for period during which it was not possible on part of assessee to file return till issuance of notice u/s 148(i.e. after the expiry of one year from the end of the assessment till notice is issued under section 148).

However interest will be payable at the rate of 1% per month(or part thereof) for the period of default. The period of default commences on the date immediately following the expiry of time given by notice u/s 148  and ends on the date of furnishing the return. Interest is payable on the amount by which the tax on the total income as reassessed exceeds the tax on the total income determined on the basis of the earlier assessment.

If the same question is asked in the exam, we cannot simply answer that assessee is not applicable for filling return. Assessment order u/s 147 is only given by AO when he has reasons to believe that income or profit or gains chargeable to tax had escaped assessment.

The question has said total income from salary but hadn't said the income from other heads. So it will be better to give the answer with provisions.

If assessee returns the file after getting notice u/s 148 then he will be liable to pay interest only for the period of default. The period of default has been explained above.

Interest will be paid only on [tax on reassessed income minus   tax on earlier income assessed] @ 1% per month or part thereof only for the period of default.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

in Q. 1, TDS Deduct u/s 194I(Payment or Credit Which ever is earlier) if no credited any amount  Exceed rs. 120000/- in Earlier period during the year. than TDS Deducted on Advance Amount Rs.1200000/-

In Q.2  there is no liability and no interest liable because total Income below Taxable Income so no Question Arise of Penalty U/S 271F and  interest U/s234A. Because Penalty liable if assessee Fall in U/s 139 for return filing but in Question it not appicable

i think interest is not liable only penalty is liable

i read capital gain ...

i have one doubt regardng ...

can treat as cost of acquision is interest on money borrowed to purchase or constaction the proparty

if it is,,, for what either constraction or purchase or both transactions...

SIR/MEDAM plz answere meeeeeeeee     THAN Q,,,

1.Can director gift his land to his private Limited Co.?