08 February 2015
My Client serve with notice u/s 142(1), asking for All Bank detail and Bank Statement for the period 01.04.2007 to 31.03.2008 along with bank summary. Now my client do not have such detail. My question is 1) Whether Failure to furnish such document will be liable for penalty u/s 271(1)(b)?
2) Whether AO is justified in calling for such old detail? If yes then is there any remedy to waive such demand?
3) Assessee is Salried Employee so he is not under any obligation to maintain any books or account and document. So how can he produce bank detail of such long period?
08 February 2015
01. Yes. It very much will attract 271 (1) 02. Just ensure with A.O. if he has taken prior permission of his higher authority. (Do this tactfully. There is every likelyhood that A.O. has done this and the entire gamut might boomerang....) 03. Please dont waste your time in asking LOGICAL question to yourself like how can he produce bank detail of such long period.? You need to show that in spite of doing genuine effort, bank is NOT able to give the details. Let bank say so....you dont have to say...ok? Being CA, I am sure you agree the importance of THIRD party evidence.
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