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Income tax demand

Sneha Ramakrishnan (Self employed) (81 Points)

25 March 2017

Is it advisable to not accept a three plus years old demand for lack of sufficient records of that time period?

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6 Replies

Studentsca (CA Practice ) (3577 Points)
Replied 25 March 2017

No it is not advisable to do so. Wether a Demand should be accepted or not depends upon the genuineness of the demand. Lack of funds cannot be a valid reason for not accepting a demand.

Prity Agarwal (CHARTERED ACCOUNTANT) (363 Points)
Replied 25 March 2017

No,

If the demand is genuine then it has to be accepted. Lack of records on our part cannot be considered as a reason for non acceptance of a demand.

(Guest)

sending notice for demand is to inform you about it

and tell u to take action about it as early as possible otherwise

they will received their tax liability by the way of

blocking ur bank account or Attaching Assets

and now a days income tax 24 hrs on line

they send u notice on line also and assume that u

have received

so act immediately after u come to know about notice of demand

Sneha Ramakrishnan (Self employed) (81 Points)
Replied 25 March 2017

Thank you for your response! But in this case, the intimation does not provide the reason or calculations for arriving at such demand outstanding amount. Hence, I am not able to assess the genuineness of the demand!

Although I have a theory! In the ITR V pertaining to the AY 2012-13 I can see a tax payable of Rs 19420, which is usually not the case as we are supposed to pay self assessment tax and square it off. I don't even understand how the return was filed in the first place. Now I feel that it is the same amount plus some interest (Rs 21900-demand amt) that is being demanded without any explanations! What should I do? Looking forward to your response!

Studentsca (CA Practice ) (3577 Points)
Replied 25 March 2017

If the the return was e-filed without your knowledge then someone must have your login id and password. Another question is how was the return verified. Did someone sign and send it to Bangalore?? From what you have mentioned the return has been filed without paying SA tax. As per section 140A if the assessee fails to pay the whole amount of tax and interest the assessee shall deemed to be assessee in default and all the provisions of the Income Tax Act shall apply accordingly. Pay up the amount or sort the matter at the earliest to avoid any action from the Income Tax Department.