Notice u/s154

211 views 3 replies

AAKASH NARESH SHAH

b com

71 Points Joined May 2012

Dear Expert
My Client have filed Return of Income declaring regular Income & also Income declared as per survey declaration and have paid tax there on as per regular computation of tax.

The case was also selected under scrutiny and assessed u/s143 (3) with regular rate of tax.

Now the Department have issued Notice u/s 154 proposing to levy 30% rate of tax as per section 115BBE on Income declared as per survey declaration as unexplained Investment as per section 69

Hence whether the proposed action is correct
Kindly advice.

Replies (3)

nasit naitik

iiiiiiiiiiiii

56 Points Joined August 2011

154 only when mistek apprant from record.
not in case of change of view.
hence I think department is wrong.

Studentsca

CA Practice

3577 Points Joined September 2012

If your client has declared the Income as per survey declaration and also paid tax on it then why are they treating it as unexplained investment as per Section 69. I don't think this is correct as it would amount to double taxation.

rama krishnan

12244 Points Joined May 2017

the difference between original demand notice and rectified demand is not going to be much. actually ur declaration in survey would have been calculated after allowing the basic exemption limit which is not taxable, then 10% tax slab and 20% tax slab. actually additions made under sections 68 69 69A 69B 69C, have to be taxed at maximum marginal rate under section 115BBE. Since the same was not updated in ITD application systems, tax might have been calculated normally. so now they wanna rectify the same. so nothing wrong in it