Show cause notice u/s 148A for not submission of ITR for AY 2017-18

[NIRMAL Kashyap]

Show cause notice u/s 148A for not submission of ITR for AY 2017-18 on the basis of 26AS. Income is taxable but the return was skipped. How to response ?

[Padmanathan KV]

What is the date of SCN? is the income likely to have escaped assessment is more than Rs.50 lakhs? Pls check this factual aspect.

See the provisions of section 149:

149. (1) No notice under section 148 shall be issued for the relevant assessment year,-

(a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);

(b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income chargeable to tax, represented in the form of-

(i) an asset;

(ii) expenditure in respect of a transaction or in relation to an event or occasion; or

(iii) an entry or entries in the books of account,

which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more:

If income likely to have escaped assessment is less than 50 lakhs, then limitation period for 148 proceedings is 3 years. Hence, check if 148 proceedings are time barred and reply to 148A accordingly to drop proceedings. 

AI Summary

Show cause notice issued under Section 148A for unfiled tax return; check if escaped income exceeds Rs. 50 lakhs. A show cause notice under section 148A was issued for not submitting an income tax return for the assessment year 2017-18, based on information from Form 26AS. The income is taxable, but the return was not filed. A response is sought on how to proceed. The reply suggests checking the date of the notice and whether the income likely to have escaped assessment exceeds Rs. 50 lakhs. It highlights the provisions of section 149, noting that if the escaped income is less than Rs. 50 lakhs, the limitation period for section 148 proceedings is three years, potentially making them time-barred.