what is section 148?

This query is : Resolved

vijayudu (Querist)
Follow

06 July 2008 what is section 148? i have received a notice from ito u/s 148 but i could not reply to the notice within 30 days . now ito has issued a notice under sec 143(2). he has issued the above notice for share trading account. but i have closed my share trading due to loss. The transactions now under scrutiny are for the period 2005-2006. now my auditor is advising me to pay some tax or i may be punished with rs.100,000/- fine. please advise me what should i do? how can i proceed further?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

07 July 2008 If the assessing officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year which has come to his knowledge, he can assess it again by issuing a notice to the assessee concerned. The assessee has to be given an opportunity to respond.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
Follow

07 July 2008 The first issue is wether you had reflected your share trading in the orignal return filed??

It appears that you had disclosed loss from share trading .........but you had not furnished audit report u/s 44AB ,for which fine is upto one lac .

Assuming above , you should file audit report now and prove reasonable cause for delay ...........if proved no fine will be levied.