Scrutiny Proceedings for A.Y : 2013:2014

[Guest]

Dear Sir,

I have received notice from income u/s 142(1) and they have asked for some details but due to our Auditing is going on we need some extension to submit the details to Income tax dept.

Can you please provide letter format for the same.

[Ganeshan Kalyani]

There is no standard format as such. You can write in your letter head address to the authority mentioning you actual hurdle in providing the details sought by them.

[Mahir S]

Yes sir, there is no any standard format for extension of time.

However, you can attach evidence letter showing the reason for extension of time,

You may also provide few records and take further time for submission of detailed reply and other records.

Compliance with notice u/s 142(1) is mandatory, even if the tax payer is of the opinion that the accounts/documents requested are irrelevant.

If assessee do not comply with the provisions of this section:

– It may result in Best Judgement Assessment u/s 144, or

– Penalized under Sec 271(1)(b) i.e. ₹ 10,000 for each failure, or

– Prosecution under Sec 276D which may extend upto 1 year with or without fine.

I would advise you to give more importance to this notice rather than auditing which can be looked by your subordinates.

AI Summary

Notice compliance: seek a documented extension while providing partial records to avoid assessment, penalties or prosecution. Requests for additional time to respond to an income tax notice should be made in writing on the taxpayer's letterhead, explaining the actual difficulty and supported by documentary evidence where possible; partial records may be supplied with a timetable for outstanding material. Compliance with statutory notice is mandatory, and failure to comply can lead to best judgement assessment, monetary penalties, and potential prosecution, so taxpayers should prioritise responding and document any extension request and interim submissions.