one of my client(salaried) has been filing all the returns within the due date.
He received above notice dated 10/10/2013 and is required to produces vaiours documents sof self and relatives on 05/11/2013.
There is mistake in filing his ROI for ay 10-11 and 11-12. Return was filed as per FOrm 16 in which rental income was not mentioned.
However rental income is reflected in 26AS.
My question 1. I am worried that penalty for concealment may be levided ? 2. Also return cannot be revised now, is their any alternative like rectification ? 3. Should i attend tomorrow or ask for adjourment ? 4. Any other planning that can be resorted to in this situation to save client from penalty ?
04 November 2013
if there is omission to present the rent income in ITR. But TDS is already deducted on this income . i.e no loss of revenue to department , then No Penalty for concealment will be levied.
If there is revenue loss, then penalty for concealment may be levied by AO.
First meet with AO tomorrow. and clear the facts that there is omission , there is no intention to escape the income . As per section 273A , there is power to AO to waive or reduce the penalty . You have to settle the matter with AO .
You can argue that the assesses has no intention to cheat exchequer as he has provided PAN to the payer and agree to receive the amount after deduction of tds and ask him to recalculate the tax. if there is difference in tax liability you have to pay it with interest
you can not revise the return once you have received the notice
only option left to you is to attend the date and argue your case
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