Rent disallowed Query

i guess that the case was fixed for A.Y. 2008-09 & Assessing officer will assess for this period only unless he opens last years case also

tax will be calculated as per the tax bracket applicable to the assessee

Originally posted by : shashin
	i guess that the case was fixed for A.Y. 2008-09 & Assessing officer will assess for this period only unless he opens last years case also

1.Does ITO have right to open previous year cases(like could he open  six year cases if he want to ) ?Does  my client have right to refuse  as i have heard if one year passed  then client have  right to deny for scruitny notice ?

2.can he be asked to pay penality too if yes how much or just interest on the taxable amount .

                                                                             Thanks

1) Yes ITO can open previous year cases also,

2) Interest will be levied @ 1% p.m. from the relevant A.Y. till the date of payment

3) Concealment penalty can be levied by the ITO which may be upto 3 times of the tax due

Tax rate for the respective years will apply as per the case laws........also under section 147 .income escaping assessment can be done also rent paid is not in tune with the market rate..........