Notice u/s 144

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Receiving a notice under Section 144 of the Income Tax Act means the department has initiated proceedings due to non-compliance, potentially leading to a demand of ₹3 crore. If no reply is filed, recovery proceedings, including bank account attachment, will commence. The available remedies include filing an appeal with the Commissioner of Income Tax (Appeals) within a specific timeframe, accompanied by a partial payment of the demand (typically 25%) and an application for a stay on the demand.

RAKESH

RAKESH (Querist)

04 July 2021 One individual firm received a notice u/s 144 of income tax act for non comply with the notice sent by department .they raised demand for rs 3 crore .now my question is that ;

1.if I still not reply for order u/s 144.what are the consequences I will face.

2.what is the remedy available with the assessee. We are now bound to pay the demand amount .

Regards
Rakesh Mandal

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 July 2021 1 Recovery proceedings will be initiated. Bank account will be attached for recovery.
2 Prefer appeal with 25% payment of the demand.

PARAS CHHAJED

PARAS CHHAJED

(Expert)

05 July 2021 File an appeal before Commissioner of Income Tax (Appeals) in Form No. 35 online with an appeal fee of Rs.1000. Simultaneously, file an application for stay of demand with the assessing officer. The stay may be granted subject to payment of 20% of demand and deserving cases even on lower payment. After filing of the appeal also file a letter to keep the penalty proceedings in abeyance till disposal of appeal by the CIT (A).
After filing of the appeal, keep the submissions ready to be made during the course of hearing of appeal in faceless proceedings

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