Show cause notice issued u/s 274 read with section 271AAC(1)

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This query is : Resolved

Balkar Singh (Querist)

21 December 2019 One of our client received the following notice from income tax department

Notice under section 274 read with section 271AAC(1) of the Income Tax Act, 1961
Sir/ Madam,
Whereas in the course of proceedings before me for the Assessment Year 2012-13, it appears to me that
income determined in your case, includes income chargeable to tax under the provisions of
section 115BBE of the Income Tax Act, 1961.
You are hereby requested to appear before me either personally or through a duly authorised
representative at 11:00 AM on 06/01/2020 and show cause why an order imposing a penalty on you
should not be made under section 271AAC(1) of the Income Tax Act, 1961.

No assessment notice was issued for the AY 2012-13 ever. we only received the notice for penalty.
though assessment proceedings was pending u/s 143(3) for AY 2017-18 which was closed on 20/12/2019 (same date of show cause notice) and no assessment order was issued for this.
Please guide me what action can we take against this show cause notice, whether we need to reply the notice?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

21 December 2019 1. Seems it is a typo graphical error in the notice, year should have been 2017-18
instead of 2012-13.
Inference- referred section came into force from AY 2017-18.

2. Reply to the notice is necessary.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

23 December 2019 Yes seems to be a typing error only. You may reply to the notice stating that no assessment proceedings were initiated in 2012-13 and that show cause notice need to be corrected.

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