Section 156, Section 271(1)(C) and Assessment order

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Vinod

engineer

27 Points Posted on 21 March 2024

Dear Experts, please advice. I went thru the Faceless assessment procedure for the assessment year 2019-20. Now i received the final reply as follows,

1) "Assessment order" says, i didnt provide proper responses to show the source of income. Although i provided detailed reply to IT Dept.

2) Demand notice says, I need to pay Rs.0 for Assessment year 2019-20. If required i can apply for appeal option within 30 days.

3) IT Department opened the penalty notice u/s 271(1)(c), 271F, 271(1)(b).

Please advice, based on the demand notice, can i consider this case is CLOSED (or) Based on assessment order, still the case is OPEN.

Im confused. Please advice. What action i need to take now?.

Replies (3)

Quick Summary

This discussion addresses a user's confusion regarding a Faceless Assessment for AY 2019-20. Despite a nil demand notice under Section 156, the assessment order states insufficient responses regarding income sources, and penalty notices under Sections 271(1)(c), 271F, and 271(1)(b) have been issued. The user seeks clarification on whether the case is closed based on the nil demand or still open due to the assessment order and penalty notices.

Jit Hazra

39 Points Posted on 21 March 2024

Sir, in view of the information you shared, I would like to tell you that an assessment order under the Income Tax Act has been passed in your case for the relevant year, raising demand payable nil. Without perusal of the said assessment order, it is difficult to comment on the outcome of the said assessment proceedings, though demand payable is nil, as per the information you shared. As per the Act, one can file an appeal against an assessment order. Regarding penalty proceedings, the sections you mentioned, I am not sure about it. More details are required to tell anything about it.