I-T dept issues 10,000 notices to tax-payers for re-assessment

Data mining reveals black money

Indore : The income tax department has issued notices to over 10,000 tax payers under Section 148 of Income Tax Act for re-assessment of their last six years of income showed in tax returns (ITRs). The notices have been served on the basis of facts revealed after data mining by the department.

 This was stated by chartered accountant and vice-chairman of CA Indore branch Pankaj Shah while addressing a seminar on, ‘Provisions of re-assessment under Section 148 of Income Tax Act ’ at ICAI auditorium here on Saturday. Shah said that if tax payers have received notice under Section 148, then he should not take it lightly. “He should immediately take legal opinion. On failing to comply, the consequences may be harsh,” he said.

Within 30 days of receiving the notice, a tax payer should re-check its financial transactions and file the return accordingly. If this is not done, then the department can raise demand and may impose penalty. In the Income Tax Act, there is a provision that in compliance of notice if tax payers do not file the return, then the department may start the prosecution. There is provision for imprisonment also.

In his address, Shah shed light on the responsibility of assessment officer. He said that the officer should check facts. “If he serves a notice without factual preparation, then on the basis of past decisions of courts, the notice will be declared null and void,” he said.

In cases where tax payers have not filed returns after receiving notice, they should file it in 30 days by paying tax with interest as per their income and dealings. “If they do so, then they may get relief from penalty,” Shah said.

Delivering the welcome address, chartered accountant Abhay Sharma, the CA Indore branch chairman, said that department has done extensive data mining. If anyone has purchased a property of more than Rs 30 lakh, made investment of more than Rs 10 lakh in mutual fund, deposited cash of more than Rs 10 lakh in savings account or from any other sources, then assessing officer can serve the notice to investigate about these transactions. CA Manoj Gupta gave opening remarks on the subject.