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Fails to reply section 148

Prabhat Pandey (210 Points)

20 July 2021

What happen when some one fails to reply form U/s148 of income tax 1961. Within given stipulated time...

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veerendar singh (tax consultant) (3301 Points)
Replied 21 July 2021

You then stand at a better position
1. you have neither admitted undisclosed income nor kept it remained undisclosed by filing a return.

2. the ao cant proceed further with inquiry proceeding untill you have filed return.

3. the ao cant finalise order under 147 unless you have filed a return.

4. the will have to invariably complete assessment under 144 with very less documentary evidence or without substantial evidence.

5. such baseless assessment can easily be anulled in appeal