Wrong financial details provided in 148a

Tax queries 392 views 2 replies

Hari Bhatt

5 Points Posted on 20 April 2024

Dear experts I believe that income tax has posted wrong financial figures in the income tax notice under section 148 .Against capital gains (shares transaction)

My question is whether there is a possibility that income tax department posted an error or is it if I am missing something

Thanks

Hari

Replies (2)

The Department relies on the information received by various institutions in SFT form

there can be a possibility that the information is not correct. In such cases, you have to prove that the information with them is incorrect, with documentary evidence.

Nikhil Kaushik

Fellow CA

86881 Points Posted on 20 April 2024

Dear Hari,

Department is often wrong in interpretation of data received by them. This is specially true for capital gains, cash deposits. We have seen in multiple cases where same transaction is reported to them multiple times and they just add it up. in one case, same sale of a house was counted up 6 times and added to the income of the assessee.

You need to be very diligent about how you reply to such notices and ensure that the Income-tax department understands the correct position. If not dealt well, it could lead to significant demand plus penalty proceedings. Other day itself we had a query where penalty proceedings were issued despite no addition made in the reassessment proceedings.

Take professional help if you can afford.