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Reply to notice u/s 148

Ravi Sharma (78 Points)

16 April 2018

Procedure after getting notice u/s 148 ??

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CA Rashmi Gandhi (Chartered Accountant) (86500 Points)
Replied 16 April 2018

The typical list of next steps to be followed is set out below.

At the first instance, the Taxpayer has to comply with the Notice and file a Return of Income. Avoid the tendency to make the most common mistake in responding to a 148 notice.After having filed the Return of Income, the Tax payer can ask for a copy of the reasons recorded for issuing the notice and place on record his objections for initiating the proceeding. There is no prescribed format for filing of the objections – a brief guide on the essential points to cover in the communication challenging the notice can be found on above link.The assessing officer has to supply the reasons for the re-opening within a reasonable time of the request being made by the Taxpayer. What is “reasonable time” – the Honourable Gujarat High Court has spelled out an indicative time-frame in this regard.After receiving a copy of the reasons recorded, the Taxpayer can supplement his objections filed earlier with specific reference to the reasons recorded to show why the reasons do not support a valid inference of escapement of income.Assessing Officer has to pass an order disposing the objections raised by the Taxpayer -and only then can he proceed further with the assessment / audit

In practice, unfortunately, the assessing officers have a tendency to brush aside the objections raised by the Taxpayer and proceed with the reassessment, irrespective of how good the objections raised by the Taxpayer are. Nevertheless, the Taxpayer could do well to utilize the above process to build a case for challenge the proceedings in the higher judicial fora, should he so desire.

The Taxpayer has the following two choices for pursuing further challenge to the notice:

a) He can file a writ petition before the jurisdictional High Court challenging the order of the assessing officer

b) He can participate in the proceedings and continue to agitate the ground relating to the jurisdiction in further appeals

As to which of the above two actions would be better suited would depend to a large degree on a qualitative evaluation of each case.

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HITESH JAIN (Job) (34 Points)
Replied 27 April 2018

if u have already filed return of income for the relevant year for which notice 148 has been issued, and if u satisfied with the return of income that there is no any transactions or information which is not reported than u may approch the department to treat the same return under section 148

not required to file return in response to 148