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Can ITO demand your Educational Certificates?

Samir (ACA) (113 Points)

24 March 2010

My question is that does the A.O have power to demand your educational/ Professional Certificates?

Like for example if a person files his ITR as Professional: Doctor. (This field is vast ofcourse there are doctors in Homeopathy, naturopathy, etc.) During the course of scrutiny or otherwise can an ITO demand your certificates, Specifically, when you are not taking any advantage of any (deductions) Specific provisions of the Act i.e. of Sports Person, Handicapped, etc)

Also does the A.O have power to demand the educational/ Professional Certificates of your spouse, etc?

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4 Replies

Amir (Learner) (4016 Points)
Replied 24 March 2010

Dear Sameer Sir,

I dont know wat to say but this query is really an interesting one and I WOULD LIKE TO KNOW THE ANSWER...........:)

I have never thought of any such thing before reading this................

One thing I would say if the assesse's claim is correct that he should not be having any problem if at all AO wants to confirm it.

As far as Testimonials of family menbers are concerned then I think AO can call in terms of Sec 40A(2)(b) Payments to specified persons - I mean where salary/consultancy is shown to the family members. (I know that judgements have held that professional competence cannot be juded by a qualification/degree but we are not discussing that part)

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 24 March 2010

Dear Samir Bhai,

I agree with amir bhai, this is a very interesting querry, I had nothing to say on this querry, but I really appreciate you bcoz I had never think in this way...

Samir (ACA) (113 Points)
Replied 25 March 2010

Ofcourse, this is a teaser question.

In this profession of practice of Income Tax, people think you have easy tasks on hand, Just file returns for clients and relax (Fill-up forms).

Here

My question is restricted to the point of Law that "does the A.O have power under the Act or otherwise to demand your educational/ Professional Certificates"?

dear amirbhai i don't wan't to go to the question "as to if the assesse's claim is correct or incorrect"

There might be situations of a person also, like his certificates are lost/ damaged or otherwise anything.

1) If the A.O demands your certificates and you produce the same, but he says that he is not satisfied by the documents you have submitted (Like for eg. for Doctors as i said he says that this diploma in naturopathy or otherwise is not valid as per his opinion?

2)If the A.O demands your certificates and you refuse to submit the same, What powers does the A.O have in this case?

3) An assesse (Lady) is say a Doctor of naturopathy and the A.O says that he is not satisfied by this claim and will add the income of this lady to the income of husband who may be suppose an doctor (M.D) Surgeon or otherwise (May be to increase collection of Taxes or meet the burdon (target) on them by the Govt.)? Even after the Lady producing all the relevant documents supporting that the income generated is out of her personal practice.

All this situations have possibilites

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 25 March 2010

The ITO has vide powers and can demand whatever documents be needed to pass the assessment order as there is no list of documents mentioned that the scope of assessment is restricted to somethings.

However as your third possibilty of A. O. not being satisfied by his claim and add the income as clubbing is not allowable and the A. O. needs to give some specific reason for his discontent and not just add the same to meet his targets.