In one of the case of mine, I received a notice for the non-filing of ITR for the A.Y.2013-14.
The notice is issued due to share market transactions and online AIR details available with Income tax department.
Is notice to be considered u/s 142(1) and can assessee file return accordingly with reference to the notice received? The notice did not put a reference of any section.
Further, in case of there is Short term loss and did not claim for carryforward, can assessee claim as he deemed not liable to file Income tax return u/s 139(1)?
21 November 2015
The letters are being issued to non filers and filers quoting the security/commodity transactions and AIR information. In your case , it may be for non filing though terhe are transactions which warrant filing of ITR. So collect the bank account copies,Account transaction summary from the Dealer/Stock Broker and check whether any profit on speculative / Non speculative transactions arise.Consider the payments from Bank also.Accordingly prepare ITR wherein you can show the Profit or loss. The loss, however, can not be carried forward.Check Form 26 AS also.Then again check under " Compliances" tab in IT Website for the client and after filing of ITR, give " response" under compliance" tab. Instead of filing of ITR, reply letter can also be given if there is no profit and the taxable income is below the limits or loss.
21 November 2015
You should file ITR in response to notice mentioned the communication reference number. However, It is advised not to file the ITR if the Income was below the taxable limit. Since you wont get to carry forward the loss anyway.
21 November 2015
Section will be quoted invaraiably. That could be a letter generally sent to non filers. Practically online return is not possible if u select the option for 139 section. Hence put sec 142 there with letter no and date
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