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Demand u/s 156

Tax queries 173 views 3 replies

RAHUL B.

CHARTERED ACCOUNTANTS

92 Points Joined December 2008

a notice of demand u/s 156 is issued to an LLP after best judgement assessment and the AO has also invoked sec. 68.

The LLP has already shut down its operations after a dispute between partners . Also the LLP didnt file any ITR .

My query is , can the IT Department freeze bank accounts or attach properties of the partners ?

Replies (3)

As per the short facts stated by you, an addition U/s 68 has been made i.e. unexplained cash credits. Against the order, you ought to have file an appeal before the Jurisdictional CIT(Appeal) and get a stay order. If not, the department has all rights for recovery

rama krishnan

12244 Points Joined May 2017

Yes, very well they can attach partners properties

Kapadia Pravin

17264 Points Joined December 2018

Similarly you do not have right not to file ITR and shut down anytime you like and thinking all game is over.

You have to either pay off demand immediately or wait for a day when you find your bank account freezed.