Income tax notice 143

Notification 1514 views 3 replies

Surekha

IT professional

61 Points Joined August 2012

I received notice from income tax department under section 143. It is written to verify my IT returns files for F.Y. 2009-2010 and Assement Year - 2010-2011

I attended that notice and income tax recovery office asked to come after 6 months once I get a detailed notice.

Actually, I had taken one flat in Pune in Dec 2007 for 40 lacks (30 lacs home loan, 3.5 lacs personal loan and remaing were my savings). And I sold it in April 2009 for 23 lacs. Its on paper value.

Actually I sold it for 40 lacs. I had taken 16,32,500 cash. I was now knwoing the fact that I should not accept cash from the other party. But as I was in some personal depression, I did that transaction.

After that for closing my home loan upto (29.5 lacs) I deposited 11 lacs cash in ICICI bank and after that deposited 2.5 lacs cash for closing personal loan.

Now after 6 months I have received detail notice from Income tax department and I have appointed one CA for this. As per CA's opinion, I have to show some valid sources for 16 lacs cash. Now I don't have valid resources.

So, as per the rule, income tax department will chare the income tax on 16 lacs and interest and penlty on this.

I am very afraid of this and I am helpless. I do not have all these money. Infact the flat which I sold was in loss. I was totally in loss. What can be done in this case? Please help me. If anyone is ready to help, please post your email id and I'll reply on that.

-Thanks a lot in advace.

Replies (3)

Jai Kumar

CA_Final_ Nov 12

63 Points Joined June 2010

Helo,

Kindly check the sub Section under which u have received the intimation. If it is u/s. 143(1), then there should not be any problem as it is sent for arithmatic mistakes etc.

However, since you have consulted a CA I presume that it is Notice u/s 143(2) (otherwise he might have told u about it).

(Presuming ur facts are right) U need not worry as u havent made any profits at all in real trasaction.

Even if the AO Charges the Concealed income, the Gain is Nil (i.e the worst case scenario would be loss u claimed will be wiped off).

However, I m still not well versed with the Penalty sections. So, i have no idea about it.

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

1st of all, i personally advise you to keep trust on your CA, and ask him for suitable remedy from his side, disclose all facts to him, including family members, and seek help

disclosure of such facts on public forum may bring you some twist in your troubles,

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on in depth study of your file / spouse file , nature of capital assets you own, there are several remedies viz sale of gold, old furniture, personal effects etc, which can be taken in consideration, but discussion with your CA would be better to understanding.

if you have senior citizen in your family then disclose that also to the the CA, this will help him to make the file ready.

Surekha

IT professional

61 Points Joined August 2012

Thanks for your reply.

I checked the section. It is 143(2).

If I show sale of gold, I have to give some recipts or some documents for this. Right?

Even if I show some old furniture, I think. I will need to show the recipts.

One more thing, I came to know that cash loan limit is 20000/- So, can I show in such a way that I have taken 20,000/- from 30-40 people (like friends, etc.)? Obviously I have to find out such friends who have withdrawal transactions of approx. 20,000/- in that time period?

But is it ok if I show taking loan from such number of people like 40 or 50?

- Thanks