17 December 2008
A retailer originally filed return of income U/s 139 (4) of the I.T.Act for the assessment year 2004-05 alongwith trading A/c, P/L A/c capital A/c Balance sheet and computation of income and disclosed less than 5% of his turnover. Lateron, on the basis of survey conducted U/s 133A made on 21-10-2005 some purchase inovice were impounded pertaining to assessment year 2004-05 the A.O. has issued notice U/s 148, without mentioned in order sheet the reason for issue of notice . A.O. only mentioned on ordersheet Issue notice U/s 148 . Further the A.O. has not mentioned on the body of the notice , the reason except the language of Section. That the assessee has in response to notice filed return U/s 148 of the Act, disclosed Net Profit more than 5 % and also filed only capital A/c. The A.O. has assessed the assessee by his on way and disallowed the claim of closing stock by saying that the assessee has not furnished detailed of closing stock with return though it appears from the original return the assessee has maintained detailed books of accounts though inspite of repeated demand the assessee has not furnished the books of accounts and details of stocks, as such hold that the assessee has sold all the entire stock and estimated the N.P. @ 5 % after disallow the closing stock filed with original return, though accepted the opening stock of year by saying that the opeing stock on verfication of immediately preceeding year found correct.That the assessee wants to file an appeal. I Think the initiation of proceeding U/s 148 is illeagal and the manner of disallowance of entire closing stock and ley of tax on entire enhance turnover is unjustified. Kindly advise with supporting case law if any.
28 December 2008
Mr Ajay First you write a letter & ask the reason for issue of 148. ITO is in law supposed to give you the reason in writing for issue of 148. else he will call you & show you the reason recorded by him for issue of 148 Your case as understood by your explanation seems that you can appeal & get benifit & even challenge the order of ITO
Incase you are from Bombay You can call me if required
CAclubindia
