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Income tax query

CA Kamlesh Verma (Chartered Accountant) (46 Points)

04 December 2015

Dear All

I need your exert advice on a case. I have a company case which has not filed tax returns after F.Y 2010-11. Company is not doing any operation after that so want to close itself. Now what is the best possible option to save company from heavy penalties and fines etc? Can we file ITR of last 5 year by any mode or as per normal provision, only ITR of 2 year is possible?

Kindly suggest me the best suitable option.

Thanks

CA Kamlesh Verma

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6 Replies

CA Hitesh Sachdev (Associate Consultant) (305 Points)
Replied 04 December 2015

Manual returns can be resorted to by trying other means.

CA Vanesh Nadar (Chartered Accountant) (521 Points)
Replied 04 December 2015

Better way would be to file return of last 2 years u/s 139 and others u/s 148/142 and then file an application to ITO. At the most he would charge a penalty of Rs. 5,000 in case for Nil Income.

CA Reshma K N (CHARTERED ACCOUNTANT) (96 Points)
Replied 04 December 2015

Make a requisition to the officer to issue notice u/s 142(1) or u/s 148 and file the return accordingly. Since there is genuine intension of disclosure of income and to pay the taxes, the case will be accepted by the AO.

May also not initiate the penalty proceedings.

CA Goutam Sharma (Chartered Accountant in Practice) (468 Points)
Replied 04 December 2015

File 2 years NIl Return and apply to CIT for immunity from penalty on the basis of avoiding genuine hardship. But mind one thing, When you are filing application for immunity to CIT on the basis of no operation, then you shoud not have any income also.

Ketan Kapoor (Audit) (124 Points)
Replied 05 December 2015

Agree with Goutam Sharma. The best option would be to file 'Nil' ROI of 2 years and then apply to CIT for immunity from penal provisions. If the company does not have any income, has no demand outstanding, has no proceedings pending against it and have filed the Return giving full and true disclosures, the CIT may allow immunity from penal proceedings on the basis of no operations of the said company. Do check the Form 26AS by logging into the Income Tax E-Filing website for any income in the said 5 PY where the returns have not been filed.