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Notice u/s 142(1)

milind (accountsofficer) (84 Points)

11 February 2010

The Company is incorporated on 31st March,2009 i.e. Certificate of Incorporation is issued on 31/03/2009 and No Transaction were for the year ended 31.03.2009. Now Notice u/s 142(1) under Income Tax Act,1961 is issued to file return for the Assessment Year 2008-09. Is Notice valid? What should the assessee company required to answer the Notice? Pls Help.

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2 Replies

sahana Murthy (Student) (123 Points)
Replied 11 February 2010

Ya very much valid.

The company was in existence for 1 day for the PY.

Regards

Sahana Murthy.

Amir (Learner) (4016 Points)
Replied 11 February 2010

Dear Milind,

On legal grounds it is mandatory for a company to file it's return as per Sec 139, even if it is incorporated on the last day of the previous year..So in ur case it is essential for AY 2009-2010

Now AO can call for a return by issuing notice u/s 142(1) but not in respect of Assessmenyt year 2008-2009, I think this may due a typographical error.

But this error doesnot invalidate the Notice due to Sec 292B -

292B. No return of income, assessment, notice, summons or other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act

Therefore I THINK YOU SHOULD RESPOND TO THIS NOTICE SIMPLY BY STATING THAT THE COMPANY WAS NOT IN EXISTENCE IN FY 2007-2008 & THAT'S WHY THE RETURN FOR THE AY 2008-2009 WAS NOT FURNISHED.