Show Cause notice u/s 148A(b) for untraceable salary paid to employeea

TDS 707 views 6 replies

sheetal sharma

8 Points Joined March 2022

I have received below notice from income tax. what should i do?

Sub: Show Cause notice u/s 148A(b) of the Income Tax Act, 1961 in your case for the
A.Y. 2018-19 –reg-.
Kindly refer to the above.
2. In this regard, kindly note that your case for the relevant assessment year has been
flagged on the Insight Portal of the Income tax Department under “High Risk” cases in
accordance with the Risk management Strategy formulated by the Central board of Direct
Taxes (CBDT), as per the provisions of section 148 of Income Tax Act, 1961.
3. Further, on examination of information flagged with your case, it has been noticed that
the amountof Rs. 23,57,138/- paid salary to employees.This transaction reported insight is
not commensurate with the ROI filed by the assessee for the relevant assessment year
.Therefore , income to the extent of Rs.23,57,138/- has escaped assessment in your case for
the relevant assessment year.
4. In view of the provisions of section 148A(b) of the Act, you are requested to show
causes as to why a notice under section 148 of the Income Tax Act, 1961, should not be
issued in your case for the relevant assessment year, since income to the extent of
Rs.23,57,138/- has been escaped assessment in your case for the relevant assessment
year. You reply in this regard should reach this office by 11:00AM on 28.03.2022. Kindly note
that in event of non-compliance to this office, it will be presumed that you have no
explanation to offer in this regard and further appropriate action as per the relevant
provisions of Income Tax Act, 1961 will be taken in your case.
5. This show-cause notice u/s 148A(b) of the Income Tax Act, 1961, is being issued after
obtaining necessary approval from Pr. Commissioner of Income Tax-1, Amritsar.

Replies (6)

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Check your form 16's , ITRs and bank statements and confirm whether notice is in order..

If you disagree then file response or visit the AO .

If you agree then pay tax along with interest

sheetal sharma

8 Points Joined March 2022

From-16, ITR and bank statements for salary credited are ok.

Should i file response with these documents?

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Yes.You may proceed with available documents..

sheetal sharma

8 Points Joined March 2022

Do you know what "salary paid to employees" means?

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

Total Salary before deductions

sheetal sharma

8 Points Joined March 2022

I have got this from income tax department but I didn't have any such income from crypto currency. What should I do?

Order under clause (d) of section 148A of the Income-tax Act,1961

Note: If digitally signed, the date of digital signature may be taken as date of document.

,AAYKAR BHAWAN, MAQBOOL ROAD, C R BUILDING, AMRITSAR, Punjab, 143001

Email: AMRITSAR.ITO1.1 @ INCOMETAX.GOV.IN,

Note:- The website address of the e-filing portal has been changed from www.incometaxindiaefiling.gov.in to www.incometax.gov.in.

* DIN- Document identification No.

1. The assessee filed its return of income on 09.07.2018 for the A.Y. 2018-19

showing total income of Rs. 9,27,120/-. The information in this case was received

from Investigation Wing, on perusal of the report, it has been noticed that the

asessee has sold crypto currency (Bitcoin) during the F.Y. 2017-18 amounting to Rs.

20,85,748/-. On perusal of the return of income filed by assessee, it has been noticed

that the assessee did not show any capital gain arisen on sale of above crypto

currency. Therefore, the sale consideration on sale of crypto currency namely Bitcoin

is remained unexplained.

2. Therefore, with prior approval of the competent authority, an opportunity of

being heard was provided to the assessee, as per provision of section 148A(b) of the

Income Tax Act,1961 vide notice dated 24.03.2022. The notice was served through

ITBA on registered email / speed post. The assessee was asked to show cause as to

why above transactions shall not be treated as income chargeable to tax which has escaped the assessment within the meaning of provision of section 147 of the
Income-tax Act 1961 for the assessment year 2018-19.
3. The assessee was required to furnish reply on or before 28.03.2022. In response
to notice, the assessee has not made any submission even elapsing seven days from
the date issuance of notice u/s 148A(b) of the Income Tax Act,1961.
4. Therefore, I am satisfied that the said income is chargeable to tax and it has
escaped assessment to the extent of Rs. 20,85,748/- as the assessee could not
explain the same. Hence, the case of assessee is a fit case for issuance of notice
u/s 148 of the Act for A.Y. 2018-19.
5. This order is passed with the prior approval of the Principal Commissioner of
Income Tax-1, Amritsar.