Penalty show cause notice is often issued mechanically along with or after assessment proceedings. A properly drafted reply, without casual admissions or unnecessary explanations, can prevent levy of penalty at the threshold stage itself. Nature of Penalty Proceedings Penalty proceedings are separate and independent from assessment proceedings. Merely because an addition has been made in … Read more
Defective return under Section 139(9) is a problem faced by many taxpayers. Receiving a notice stating that your income-tax return is defective under section 139(9) often causes unnecessary anxiety. Many taxpayers assume it is a serious default or that penalties will follow immediately. In reality, a defective return notice is procedural, not punitive, and in … Read more
CPC 143(1) adjustment is a common issue faced by taxpayers when the Centralised Processing Centre increases returned income or reduces a refund. Most such adjustments are mechanical in nature and can be corrected if responded to properly within time. What the law says (in simple words) Section 143(1) allows CPC to make prima facie adjustments … Read more
Reassessment after 3 years under the Income-tax Act, 1961 is not automatic and can be initiated only if strict statutory conditions are satisfied. Many reassessment notices are issued after 3 years from the end of the relevant assessment year. Such cases are subject to stricter conditions. What the law says After 3 years, reassessment is … Read more
Notice under section 142(1) is one of the most common notices issued during income-tax assessment proceedings. It seeks information, documents, or explanations from the taxpayer to enable the Assessing Officer (AO) to complete the assessment. While the notice itself is procedural and lawful, the manner in which a taxpayer responds often determines whether the assessment … Read more
Notice under section 143(2) of the Income-tax Act is a critical stage in the assessment process. It is the statutory gateway through which the Assessing Officer assumes jurisdiction to scrutinise a return of income. While receiving a 143(2) notice often causes concern, it is important to understand that not every notice is legally valid, and … Read more
Difference between Section 148, 148A and 151 is a critical concept in income-tax reassessment after 01.04.2021. Many taxpayers receive reassessment notices without understanding which provision applies, why it has been issued, and whether the mandatory procedure followed by the Assessing Officer is legally valid. Understanding the difference is important because procedural defects at any stage … Read more
How to reply to a 148A(b) notice is one of the most critical stages in reassessment proceedings under the Income-tax Act. A notice under section 148A(b) is not reassessment yet, but a weak or careless reply at this stage almost guarantees issuance of a notice under section 148. Below is a practical, field-tested structure for … Read more
If you have received a notice under section 148A of the Income-tax Act, it means the department is considering reopening your assessment. This stage is critical. A careless or delayed reply can lead to reassessment proceedings under section 148. Below is a clear, practical explanation of what you should do—without panic and without unnecessary admissions. … Read more