06 December 2012
• Basically my client has Govt approved Fair Price shop (ration shop)from last 15 years. • Assessee earn fixed commission of Rs.35 per 100kg on sale of wheat & rice and Rs. 10 per 100 kg of Sugar. • assessee's monthly income range between Rs. 5000-7000. But turnover (cash Sale) range between Rs 1.5-1.7 lac p.m. • Assessee deposit cash sale in bank account and after that allocation (purchase of good from govt.) made through NEFT to govt account. • For A/y 2011-12, assessee had not filed ITR, in October 2012 he had received notice for non filing of ITR from IT department. • In reply of that he had filed ITR in Nov 12, by putting some arbitrary figure of gross receipt of 8-9 lac and taxable income 1.70 lac. Mentioned in letter to AO that due to our taxable income is below exemption limit so we have not filed ITR previously. • After that he received another notice of AIR for cash deposit of Rs. 19 lacs and Notice u/s 148 for income escaping, demanding ITR to be file u/s 148.
Now, my contention is that whether i should revise previous return filed on arbitrary basis or fight on ground of original return. Because our case is so genuine and we have all documents which can Proof that assessee's income is below taxable limit.
06 December 2012
Accept the mistake of putting ARBITRARY figure of gross receipts of 8-9 lakh and taxable income of 1.70 lakh. Prove the income to be below taxable limit to the satisfaction of AO. Co operate during assessment proceedings. This will NOT attract any 271 (a) (c) kind of penalty. Genuine assessee need not go panic with any such notice u/s148. Also place on record the reasons why ARBITRARY figures were given in the return. For price controlled shops there is always LOT of pressure from Distributing Officers.