As the technology has come around with the most of the income tax (IT) departments’ communication addressed to the taxpayer is provided to his or her enrolled email. The Delhi High court in Venad properties Pvt ltd. vs. Commissioner of Income Tax (2013) 212 Taxman 20, ruled that the object and the intention of the service of the notice are to tell and deliver the addressee about the proceedings along with the hearing date. When the notice is provided or obtained by the party related and that is made, then the way or the method of service is not concerned.
Ignoring a notice the departmental e-mails and registered posts would prove to be costlier, drawing an income tax penalty of Rs 10,000 for every default. Non-compliance relies on the validities or the seriousness of the case, which would be directed to the prosecution.
Latest Update
16th November 2022
- While dismissing a writ petition, the MP High Court ruled that an income tax notice under section 148A(b) can only be challenged by statutory remedy. Read Order
22nd July 2022
- As per the judgment of Delhi ITAT, comprising of Judge Shri Challa Nagendra Prasad and Accountant Pradip Kumar Kedia have charged a cost of Rs. 2000 for ignoring the income tax notice. Read more
The majority of the common causes for the assessee to obtain the notices comprise late IT returns filing, intentionally misreporting of the long term capital gains obtained on the listed equity shares, and the additional mutual funds, non-disclosure of income, and investments made in the name of spouse, high-value transactions and tax theft and former years.
The IT council in the current years, beneath ‘Project Insight’ is becoming tech-savvy, through the data analytics along with the artificial intelligence considerably. It monitors the financial and non-financial transactions and poses it to cross-verify during the processing of the Income Tax Returns.
Kind of Income Tax e-Notices
There are 6 types of income tax e-notices as per government rules. Here, we have briefly explained with CBDT income tax sections.
Defective Notice Under Section 139(9) IT Return
The assessing office might provide the notice beneath section 139(9) when in his intention the return furnished by the taxpayer is not true. It is a chance for the taxpayer to correct the glitches, given the missing details, and complete the return in all the concerns under 15 days from the intimation date or prolonged time.
Preliminary Inquiry Under Section 142(1) (i)
The assessing officer might provide the notice beneath section 142(1) (i) to the individual who does not furnish the income return prior to the finish of the concerned assessment year, needing him to file the income return. The same notice is to be provided after the expiry of the mentioned last dates.
Notice Cum Intimation
The assessing officer might provide the notice cum intimation beneath income tax section 143(1) mentioning that the furnished return is acknowledged as a final assessment of that specified return or refund of excess taxes post to managing the tax dues or another tax demand, towards the concern of short payment or omission of the income via tax limit. But the tax department would still send the notice beneath different sections asking for another detail. The same intimation would be expected within 9 months of the financial year where the return is filed.
Notice for Commencement of Scrutiny
It is a follow-up notice towards the notification sent beneath section 142(1). When the assessing officer is not satisfied with the answer given in it. Towards the case in which he might ask the taxpayer to attend his office in person or create the documentary proofs in assistance of his claims. The same notice is to be provided on or prior to the expiry of the three months from the finish of the fiscal year where the return is to be filed.
Income Escaped Assessment
The Assessing officer might provide the notice beneath section 148 when he does not agrees with the former assessment of the ITR in which some specific income fled left assessment. This comprises of re-opening of the closed Assessment. But the assessing officer must pose a true cause to reopen the case and should record the cause to issue the mentioned notice.
Read Also: How to Reply Income Tax Compliance Notices? (Easy Guide)
More Penalty/Fine Under Income Tax
The assessing officer would provide the notice beneath section 156 to obtain the left tax or penalty post to finish the assessment. The taxpayer is needed to deposit the amount subjected to pay in 30 days from the receipt date of the notice. Excluding the additional cases, there is no time limit that is been mentioned here. When you have obtained an email through the IT department then you must not get afraid or ignored the same. You should take a set of printouts, and review its authenticity at the e-portal of the IT department (https://bit.ly/38szmN6), learn it thoroughly, and carry the corrective actions.
If the situation is not effective then you should take advice from the professionals.
