Very Urgent Please- Query recd from Director of Income Tax

Tax queries 1555 views 4 replies

Dear All,

An Assessee is regular in filling returns every year; He entered into a transaction purchasing property jointly worth more than 30 Lakhs. All the payments made thereof are well accounted entries. In the returns he has also declared the transaction in the AIR Column. Further part payment of the purchase was funded by LOAN. The Agreement was made & Regd. by the builder, but still he annexed copy of PAN Card and also mentioned the Pan No. in the Agreement in F.Y 2009-2010. I guess the Registrar might have not entered the Pan No. at time of Document Registration.

Now he has received a letter from the Director of Income Tax(CIB) stating that they are in possession of information through AIR that you have entered into a High Value transaction in which you have not quoted PAN.

So they have asked for PAN No., copy of PAN Card and copy of ITR.

My question is what to do?

Just mention PAN No., annex copy of PAN and copy of Return?

OR mention PAN No., annex copy of PAN, Copy of Returns for F.Y 2009-2010 and also annex a letter giving explanation that he has declared the transaction in the Returns and also the Pan No. in the transaction. And also give all the particulars and Details of source of Capital Invested while purchasing that property.

 

Please reply early, Thanks!

Replies (4)

its normal process of compliance, send a letter endlosing your return where the same is displayed as annexure to your compliance lettter stating all facts, have acknowledgement under seal and signature of the issuing office.

registrar office usually file AIR but they dont have expertize to co-relate pan always, its not a big issue, sending your PAN copy and return filed for the period will make them satisfied with the issue.

Thanks Mr. Sharma,

But do I also need to annex a letter giving explanation that the assess has declared the transaction in his Returns.

And give all the particulars and Details of source of Capital Invested while purchasing that property, as we do in case of query from ITO ?

Hello, do I also need to annex a Letter giving explanation that the assesse has declared the transaction in his Returns.

And give all the particulars and Details of source of Capital Invested while purchasing that property, (even though not asked)as we do in case of query from ITO ?

you have just to produce your PAN copy, return copy of the year related, 

write in letter that the subject transaction is recorded in your ITR, mention the value, date of transaction and mode of transaction ( bank details)

if they need any further clarification they will ask you, but generally they drop the proceedings after such compliance.

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most probably the vendor ( seller) file is under income tax scurtiny, so the information is asked from buyer(s) for counter confirmation.


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