Intimation u/s 144B

Respected Professional,

I've a Commission business in which huge transaction of Cash is involved but commission thereon is below the threshold of tax and i've failed to file my ITR for the AY 2018-19 for which order under section 148 has been passed but I was unable to file my return against that order and now intimation u/s 144B has been served.

Is it alright to file my return against order u/s 148 & how to deal with intimation u/s 144B.

Kindly give your suggestion regarding the same.
Replies (2)
Quick Summary
This discussion addresses a user's concern about receiving an intimation under section 144B after failing to file an Income Tax Return (ITR) for AY 2018-19 and receiving a prior order under section 148. The advice suggests that while filing a return against the section 148 order is necessary, the intimation under section 144B can potentially be challenged. Grounds for challenge include procedural errors, the assessing officer not properly addressing the reply to the 148A notice, or a lack of clear evidence that income escaped assessment. It's recommended to consult with a professional experienced in handling such tax notices.

I have the experience in dealing with Income tax notices. If you need any help then please share the notices with me first. Please check your inbox for that.

The thread already answers about how to deal with intimation u/s.144B.  I however put some additional comments with regard to s.148A/s.148 which you can think over.

Pursuant to any s.148A is a procedural safeguard for benefit of assessee which must be followed by assessing officer before issuing a notice u/s.148. In your case, since you file a reply to 148A notice(presumably objecting to reopening of assessment) and the same got rejected.  As far as department is concerned, the decision is final and you need to file a return etc. 

However, on various grounds including an order having been passed on non existent/ perverse reasons or presumptions, 148A order not dealing with your reply properly, absence of nexus between material available on record and formation of reason to believe that any income escaped assessment, you may be able to successfully challenge the order reopening the assessment itself before jurisdictional High Court.

While each case depends on facts, in my experience, I have seen that majority of orders suffer from one or the other lacunae and can be challenged before High Court to avoid assessment in toto; at occasion courts have also intervened even if assessment orders were passed.

For any proceedings before amended section 148A came in force, similar safeguards were available in form of different judicial pronouncements.

 

Good luck!

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