dear all, · per form 26as but wrongly declared presumptive income u/s.44ad as rs.11,53,220.00. ......

25.10.2019

Dear All,

Now a days a few clients wants to hire a tax consultant for efiling of their Income Tax Return at a very lesser fees around Rs.200.00 or 300.00. There arealso plenty of tax consultants in West Bengal who is doing the efiling job in Rs.100.00 also.

Let me share one story where a person of W.B. has got notice of tax demand from Income tax department for Rs.5,43,209.00 for filing ITR through low cost tax consultant. Very interesting, in spite of the demand notice the person is still in casual approach. The Story goes like

One tax payer of West Bengal having Bangalore based PAN address, executed work contract job in Bangalore. He was to file ITR for refund of TDS Rs.14,658.00 which was deducted on contract job of Rs.14,41,228.00.

He approached to a low cost tax consultant in W.B. for filing of ITR. The tax consultant filed ITR4S by declaring gross sale correctly as Rs.14,41,228.00 as per form 26AS but wrongly declared presumptive income u/s.44AD as Rs.11,53,220.00. Furthermore he made blunder mistake by filing ITR without payment of self assessment tax of Rs.1,61,440.00 as per return. As we know that filing of ITR without payment of tax liability,makes ITR defective U/s.139(9) of the IT Act. Accordingly the tax payer received notice for defective ITR and was advised to rectify the defect by payment of tax liability of Rs.1,61,440.00

The tax consultant revised the ITR4S and this time declared income from business Rs.1,15,320.00 (Earlier it was Rs.11,53,220.00). Although the revisedincome from business is under the limit of 8% U/s.44AD (i.e. 8% of Rs.14,41,228= Rs.1,15,298.00) but due to under cutting of total income by Rs.10,37,900.00 (11,53,2201,15,320.00), the file was taken for Scrutiny Assessment.

Several notices and reminders were sent by the Income Tax department by posts and emails but the tax payers did not bother to respond any notice. Finally best judgment assessment was done by the ITO and demand notice was sent for tax payable Rs. 2,31,839.00 and penalty Rs.3,11,370.00 total payable Rs.5,43,20.9

From the above, we can see that simple case of refund of Rs.14,658.00 turns into demand of Rs.5,43,209.00 due to low cost tax consultant.

The tax payer came to me for solution of the problem but again casual and negotiation.

Moral of the story: Do not encourage/indulge in low cost efiling. keep the dignity of tax consultants high.

Read the attached Assessment Order, Demand Notice and Penalty notice carefully.

This is shared for your information and education purpose only.

GOVERNMENT OF INDIAMINISTRY OF FINANCE

INCOME TAX DEPARTMENTOFFICE OF THE INCOME TAX OFFICER

WARD 4(3)(5), BANGALORE

To,SAKTIPADA MONDALNA NA ,GOGHATA GOGHATA NOWDA 742121,West Bengal India

PAN:CBNPM1833M

AY:2016-17

Order No:ITBA/AST/S/144/2018-19/1014575714(1)

Dated:26/12/2018

Name of the assessee SAKTIPADA MONDALAddress of the assessee NA NA , GOGHATA GOGHATA, NOWDA

742121, West Bengal, India Status INDIVIDUALRange/Circle/Ward WARD 4(3)(5), BANGALOREResident/Resident but not Ordinary resident/ Non-resident

Resident

Date of Hearing 12/07/2017, 27/04/2018, 02/07/2018, 24/12/2018Section/Sub-section under which assessment is made

144

Date of Order 26/12/2018

ASSESSMENT ORDER

*ITB

A100

0132

1753

2*

Note: If digitally signed, the date of digital signature may be taken as date of document. BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU, Karnataka, 560095

Email: [email protected],

The assessee has E-filed the Return of income for A.Y. 2016-17 on 07.06.2016 declaring Total Income of Rs.11,53,220/- consisting of Income from other sources of Rs.11,53,220/-. The same was revised on 21.06.2016 declaring to Total income of Rs.1,15,320/- consisting of Income from other sources of Rs.1,15,320/-. The same was processed u/s. 143(1). Subsequently, the case was selected for scrutiny under CASS with the following remark:

“Whether reduction of income in revised return is correct”

2. Notice under section 143(2) of Income Tax Act was issued on 04.07.2017 and served on assessee. Subsequently notice u/s 142(1) of Income Tax Act dated 20.10.2018 was issued calling for information in respect of CASS reason.

3. During the course of assessment proceedings, Notices u/s. 142(1) of Income Tax Act, 1961 have been issued on 20.10.2018, 24.01.2018, 09.04.2018, 24.04.2018 & 21.06.2018

calling for information and to furnish the details of Share Capital and investments. The assessee has not complied with Statutory Notices issued and has not discharged the burden cast upon assessee to substantiate the claims made in the return of income.

4. However, keeping in view of the principle of natural justice and equity, show cause notice vide number ITBA/AST/F/143(3)(SCN)/2018-19/1014440748 (1) dated 20.12.2018 was issued to assessee stating that in the event of failure to comply with above show cause notice dated 20.12.2018, the assessment will be concluded based on the records available.

5. As per the Principle of Natural Justice enough number of opportunities was given to the assessee by sending statutory notices u/s 142(1) to the last known address of the assessee. There is no co-operation from the assessee in completion of the scrutiny assessment, despite sending several notices u/s 142(1) on various dates. Hence, the assessment is concluded based on the Cass reasons and Individual Transaction Statement.

6. Since, this is time barring assessment undersigned is left with no option but to complete the assessment as per the Best Judgment Assessment under section 144 of Income Tax Act, 1961 based on the records available on record. Assessment is concluded with the following observation:

6.1. The assessee has filed the Original Return of Income on 07.06.2018 declaring total income of Rs.11,53,220/- and again the assessee filed Revised Return of Income declaring total income of Rs.1,15,320/-, it is seen that the Taxable income shown in revised return is less than the taxable income shown in the Original Return. As the assessee has failed to explain inspite of so many opportunities the difference of Taxable income in Original & Revised return of income which amounts to Rs.10,37,900/- is treated as unexplained income and the same is brought to tax.

7. From the above it can be seen that the assessee has furnished inaccurate particulars of such income thereby contravening the provisions of section 271(1)(c) of the IT act. Therefore penalty proceedings are initiated u/s. 271(1)(c) of the Income Tax Act, 1961.

8. Issue demand notice accordingly.

9. Penalty proceedings u/s.271(1)(c) of the Income Tax Act, 1961 for furnishing inaccurate particulars of income are initiated separately.

JESSICA JACOB

Page 2 of 3

CBNPM1833M- SAKTIPADA MONDALA.Y. 2016-17

ITBA/AST/S/144/2018-19/1014575714(1)


Copy to: Assessee

JESSICA JACOB WARD 4(3)(5), BANGALORE

(In case the document is digitally signed please refer Digital Signature at the bottom of the page)

Page 3 of 3


ITBA/AST/S/144/2018-19/1014575714(1)


INCOME TAX DEPARTMENT OFFICE OF THE INCOME TAX OFFICER


To,

SAKTIPADA MONDALNA NA ,GOGHATA GOGHATA NOWDA 742121,West Bengal India

PAN: CBNPM1833M

Date: 26/12/2018

Status:INDIVIDUAL

Notice No:ITBA/AST/S/156/2018-19/1014575792(1)

Subject: Notice of demand under section 156 of the Income-Tax Act, 1961

1. This is to give you notice that for the assessment year 2016-17 a sum of Rs. 2,31,839, details of which aregiven on the reverse, has been determined to be payable by you.

2. The amount should be paid to the Manager, authorised bank/State Bank of India within 30 days of theservice of this notice. A challan is enclosed for the purpose of Payment.

3. If you do not pay the amount within the period specified above, you shall be liable to pay simple interest atone per cent for every month or part of a month from the date commencing after the end of the periodaforesaid in accordance with section 220(2).

4. If you do not pay the amount of the tax within the period specified above, penalty (which may be as much asthe amount of tax in arrear) may be imposed upon you after giving you a reasonable opportunity of beingheard in accordance with section 221.

5. If you do not pay the amount within the period specified above, proceedings for the recovery thereof will betaken in accordance with sections 222 to 227, 229 and 232 of the Income-tax Act, 1961.

6. If you intend to appeal against the assessment, you may present an appeal under Part A of Chapter XX ofthe Income-tax Act, 1961, to the CIT (A),Bengaluru- 4 within thirty days of the receipt of this notice, in FormNo. 35, duly stamped and verified as laid down in that form.

JESSICA JACOBWARD 4(3)(5), BANGALORE

(In case the document is digitally signed pleaserefer Digital Signature at the bottom of the page)

*ITB

A100

0132

1763

3*

Note: If digitally signed, the date of digital signature may be taken as date of document. BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE,

KORAMANGALA, BENGALURU, Karnataka, 560095 Email: [email protected],


ITBA/AST/S/156/2018-19/1014575792(1)


INCOME TAX DEPARTMENTOFFICE OF THE INCOME TAX OFFICER

WARD 4(3)(5), BANGALOREBMTC BUILDING, BENGALURU, KARNATAKA

To,SAKTIPADA MONDALNA NA , GOGHATA GOGHATANOWDA 742121, West BengalIndia

Computation Sheet

General DetailsPAN CBNPM1833M Assessment Year 2016-17Name SAKTIPADA MONDAL Address NA,NA,

GOGHATA,GOGHATA, NOWDA,

Residential Status Resident Order Passing Authority

AO

Order Number ITBA/PNL/F/271(1)(c)/2019-20/1016485292(1)

Order Date 25/06/2019

Date of Issue of Computation Sheet

25/06/2019

Computation DetailsPenalty Section 271(1)(c) Penalty Demand (in

Rs.)3,11,370

DIN No. 2019201640402656932T

*ITB

A100

0156

5628

5*

Note: If digitally signed, the date of digital signature may be taken as date of document.,BMTC BUILDING, 80 FEET ROAD, 6TH BLOCK, NEAR KHB GAMES VILLAGE, KORAMANGALA, BENGALURU, Karnataka, 560095

Email: [email protected],

JESSICA JACOB WARD 4(3)(5), BANGALORE

Data updated till 25-Oct-2019

Form 26AS

Annual Tax Statement under Section 203AA of the Income Tax Act, 1961

See Section 203AA and second provision to Section 206C (5) of the Income Tax Act, 1961 and Rule 31AB of Income Tax Rules, 1962

Permanent Account Number (PAN) CBNPM1833M Current Status of PAN Active Financial Year 2015-16 Assessment Year 2016-17

Name of Assessee SAKTIPADA MONDAL

Address of Assessee C/O OM SAI TELECOM MUNI, YALLAPPA BUILDING NEAR, ADHIPARASHAKTHI TEMPLE, GOLLAHALLI ROAD HEBBAGODI, BANGALORE, KARNATAKA, 560099

Above data / Status of PAN is as per PAN details. For any changes in data as mentioned above, you may submit request for correctionsRefer www.tin-nsdl.com / www.utiitsl.com for more details. In case of discrepancy in status of PAN please contact your Assessing Officer

Communication details for TRACES can be updated in 'Profile' section. However, these changes will not be updated in PAN database as mentioned above

(All amount values are in INR)PART A - Details of Tax Deducted at Source

Sr. No. Name of Deductor TAN of Deductor Total Amount Paid/Credited

Total Tax Deducted # Total TDSDeposited

1 L&W BUILDERS PRIVATE LIMITED BLRL03350E 1441228.00 14658.00 14658.00

Sr. No. Section 1 Transaction Date Status of Booking* Date of Booking Remarks** Amount Paid / Credited

Tax Deducted ## TDS Deposited

1 194C 31-Mar-2016 F 15-May-2016 - 63500.00 635.00 635.00

2 194C 23-Mar-2016 F 15-May-2016 - 85200.00 852.00 852.00

3 194C 09-Mar-2016 F 15-May-2016 - 65100.00 651.00 651.00

4 194C 22-Feb-2016 F 15-May-2016 - 35500.00 355.00 355.00

5 194C 08-Feb-2016 F 15-May-2016 - 52600.00 526.00 526.00

6 194C 23-Jan-2016 F 15-May-2016 - 12000.00 120.00 120.00

7 194C 11-Jan-2016 F 15-May-2016 - 71900.00 719.00 719.00

8 194C 23-Dec-2015 F 16-Jan-2016 - 12700.00 127.00 127.00

9 194C 07-Dec-2015 F 16-Jan-2016 - 4500.00 45.00 45.00

10 194C 23-Nov-2015 F 16-Jan-2016 - 5800.00 58.00 58.00

11 194C 13-Nov-2015 F 16-Jan-2016 - 5500.00 55.00 55.00

12 194C 10-Nov-2015 F 16-Jan-2016 - 32000.00 320.00 320.00

13 194C 14-Oct-2015 F 16-Jan-2016 - 32700.00 327.00 327.00

14 194C 25-Sep-2015 F 21-Oct-2015 - 43600.00 436.00 436.00

15 194C 10-Sep-2015 F 21-Oct-2015 - 61200.00 612.00 612.00

16 194C 25-Aug-2015 F 21-Oct-2015 - 152800.00 1528.00 1528.00

17 194C 11-Aug-2015 F 21-Oct-2015 - 73900.00 739.00 739.00

18 194C 23-Jul-2015 F 21-Oct-2015 - 189800.00 1898.00 1898.00

19 194C 10-Jul-2015 F 21-Oct-2015 - 90500.00 905.00 905.00

20 194C 25-Jun-2015 F 25-Jul-2015 - 119857.00 1289.00 1289.00

21 194C 09-Jun-2015 F 25-Jul-2015 - 66536.00 715.00 715.00

22 194C 23-May-2015 F 25-Jul-2015 - 46748.00 503.00 503.00

23 194C 11-May-2015 F 25-Jul-2015 - 93187.00 1002.00 1002.00

24 194C 25-Apr-2015 F 25-Jul-2015 - 24100.00 241.00 241.00

PART A1 - Details of Tax Deducted at Source for 15G / 15H

Sr. No. Name of Deductor TAN of Deductor Total Amount Paid / Credited

Total Tax Deducted # Total TDS Deposited

Sr. No. Section 1 Transaction Date Date of Booking Remarks** Amount Paid/Credited Tax Deducted ## TDS Deposited

No Transactions Present

PART A2 - Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA/ TDS on Rent of Property u/s 194IB (For Seller/Landlord of Property)

Sr. No. Acknowledgement Number

Name of Deductor PAN of Deductor Transaction Date Total Transaction Amount

Total TDS Deposited***

Sr. No. TDS Certificate Number

Date of Deposit Status of Booking* Date of Booking Demand Payment TDS Deposited***

Gross Total Across Deductor(s)


PART B - Details of Tax Collected at Source

Sr. No. Name of Collector TAN of Collector Total Amount Paid/Debited

Total Tax Collected + Total TCS Deposited

Sr. No. Section 1 Transaction Date Status of Booking* Date of Booking Remarks** Amount Paid/Debited

Tax Collected ++ TCS Deposited


PART C - Details of Tax Paid (other than TDS or TCS)

Sr. No.

Major Head

3 Minor Head

2 Tax Surcharge Education Cess

Others Total Tax BSR Code Date of Deposit

Challan Serial Number

Remarks**

1 0021 400 11250.00 0.00 0.00 0.00 11250.00 0004329 03-May-2019 15945 -

Part D - Details of Paid Refund

Sr. No.

Assessment Year Mode Refund Issued Nature of Refund Amount of Refund Interest Date of Payment Remarks


Part E - Details of AIR Transaction

Sr. No.

Type Of Transaction

4 Name of AIR Filer Transaction Date

Single/JointParty Transaction

Number of Parties

Amount Mode Remarks**


Notes For AIR:

1.Due date for filing Annual Information return by specified entities (Filers) is 31st August, immediately following the FY in which transaction is registered / recorded. This section will be updated after filing AIR.2. Transaction amount is total amount reported by AIR filer. It does not reflect respective share of each individual in joint party transaction.

PART F - Details of Tax Deducted at Source on Sale of Immovable Property u/s 194IA/ TDS on Rent of Property u/s 194IB (For Buyer/Tenant of Property)

Sr. No.

Acknowledgement Number

Name Of Deductee PAN of Deductee

Transaction Date

Total Transaction Amount

Total TDS Deposited***

Total Amount Deposited other

than TDS

###

Sr. No.

TDS Certificate Number

Date of Deposit Status of Booking*

Date of Booking Demand Payment TDS Deposited*** Total Amount Deposited other

than TDS

###

Gross Total Across Deductor(s)

No Transactions Present(All amount values are in INR)

PART G - TDS Defaults* (Processing of Statements)

Sr. No. Financial Year Short Payment Short Deduction Interest on TDS Payments Default

Interest on TDS Deduction Default

Late Filing Fee u/s 234E

Interest u/s 220(2) Total Default

Sr. No. TANs Short Payment Short Deduction Interest on TDS Payments Default

Interest on TDS Deduction Default

Late Filing Fee u/s 234E

Interest u/s 220(2) Total Default


*Notes:

1.Defaults relate to processing of statements and donot include demand raised by the respective Assessing Officers.

2.For more details please log on to TRACES as taxpayer.

Contact Information

Part of Form 26AS Contact in case of any clarification

A Deductor

A1 Deductor

A2 Deductor

B Collector

C Assessing Officer / Bank

D Assessing Officer / ITR-CPC

E Concerned AIR Filer

F NSDL / Concerned Bank Branch

G Deductor

Legends used in Form 26AS

*Status Of Booking

Legend Description Definition

U Unmatched Deductors have not deposited taxes or have furnished incorrect particulars of tax payment. Final credit will be reflected only when payment details in bank match with details of deposit in TDS / TCS statement

P Provisional Provisional tax credit is effected only for TDS / TCS Statements filed by Government deductors."P" status will be changed to Final (F) on verification of payment details submitted by Pay and Accounts Officer (PAO)

F Final In case of non-government deductors, payment details of TDS / TCS deposited in bank by deductors have matched with the payment details mentioned in the TDS / TCS statement filed by the deductors. In case of government deductors, details of

Assessee PAN: CBNPM1833M Assessee Name: SAKTIPADA MONDAL Assessment Year: 2016-17

TDS / TCS booked in Government account have been verified with payment details submitted by Pay and Accounts Officer (PAO)

O Overbooked Payment details of TDS / TCS deposited in bank by deductor have matched with details mentioned in the TDS / TCS statement but the amount is over claimed in the statement. Final (F) credit will be reflected only when deductor reduces claimed amount in the statement or makes additional payment for excess amount claimed in the statement

**Remarks

Legend Description

'A' Rectification of error in challan uploaded by bank

'B' Rectification of error in statement uploaded by deductor

'C' Rectification of error in AIR filed by filer

'D' Rectification of error in Form 24G filed by Accounts Officer

'E' Rectification of error in Challan by Assessing Officer

'F' Lower/ No deduction certificate u/s 197

'T' Transporter

'G' Reprocessing of Statement

# Total Tax Deducted includes TDS, Surcharge and Education Cess## Tax Deducted includes TDS, Surcharge and Education Cess+ Total Tax Collected includes TCS, Surcharge and Education Cess++ Tax Collected includes TCS, Surcharge and Education Cess*** Total TDS Deposited will not include the amount deposited as Fees and Interest### Total Amount Deposited other than TDS includes the Fees , Interest and Other ,.etc

Notes for Form 26AS

a. Figures in brackets represent reversal (negative) entriesb. In Part C, details of tax paid are displayed excluding TDS or TCS, payments related to Securities Transaction Tax and Banking Cash Transaction Taxc. Tax Credits appearing in Part A, A1, A2 and B of the Annual Tax Statement are on the basis of details given by deductor in the TDS / TCS statement filed by them. The same should be verified before claiming tax credit and only the amount which pertains to you should be claimedd. This statement is issued on behalf of the Income Tax Department. See Section 203AA and second provision to Section 206C(5) of the Income Tax Act, 1961 and Rule 31AB of Income Tax Rules, 1962e. This statement does not include payments pertaining to Assessment Year (AY) other than the AY mentioned above and payments against penaltiesf. Date is displayed in dd-MMM-yyyy formatg. Details of Tax Deducted at Source in Form 26AS, for Form 15G/15H includes transactions for which declaration under section 197A has been Quoted

1.Sections

Section Description

192 Salary

192A TDS on PF withdrawal

193 Interest on Securities

194 Dividends

194A Interest other than 'Interest on securities'

194B Winning from lottery or crossword puzzle

194BB Winning from horse race

194C Payments to contractors and sub-contractors

194D Insurance commission

194DA Payment in respect of life insurance policy

194E Payments to non-resident sportsmen or sports associations

194EE Payments in respect of deposits under National Savings Scheme

194F Payments on account of repurchase of units by Mutual Fund or Unit Trust of India

194G Commission, price, etc. on sale of lottery tickets

194H Commission or brokerage

194I Rent

194IA TDS on Sale of immovable property

194J Fees for professional or technical services

194K Income payable to a resident assessee in respect of units of a specified mutual fund or of the units of the Unit Trust of India

194LA Payment of compensation on acquisition of certain immovable

194LB Income by way of Interest from Infrastructure Debt fund

194LC Income by way of interest from specified company payable to a non-resident

194LBA Certain income from units of a business trust

194LBB Income in respect of units of investment fund

194LBC Income in respect of investment in securitization trust

Section Description

194LD TDS on interest on bonds / government securities

195 Other sums payable to a non-resident

196A Income in respect of units of non-residents

196B Payments in respect of units to an offshore fund

196C Income from foreign currency bonds or shares of Indian

196D Income of foreign institutional investors from securities

206CA Collection at source from alcoholic liquor for human

206CB Collection at source from timber obtained under forest lease

206CC Collection at source from timber obtained by any mode other than a forest lease

206CD Collection at source from any other forest produce (not being tendu leaves)

206CE Collection at source from any scrap

206CF Collection at source from contractors or licensee or lease relating to parking lots

206CG Collection at source from contractors or licensee or lease relating to toll plaza

206CH Collection at source from contractors or licensee or lease relating to mine or quarry

206CI Collection at source from tendu Leaves

206CJ Collection at source from on sale of certain Minerals

206CK Collection at source on cash case of Bullion and Jewellery

206CL Collection at source on sale of Motor vehicle

206CM Collection at source on sale in cash of any goods(other than bullion/jewelry)

206CN Collection at source on providing of any services(other than Ch

2.Minor Head 3.Major Head

Code Description

100 Advance tax

102 Surtax

106 Tax on distributed profit of domestic companies

107 Tax on distributed income to unit holder

300 Self Assessment Tax

400 Tax on regular assessment

Code Description

0020 Corporation Tax

0021 Income Tax (other than companies)

0023 Hotel Receipt Tax

0024 Interest Tax

0026 Fringe Benefit Tax

0028 Expenditure Tax / Other Taxes


800 TDS on sale of immovable property 0031 Estate Duty

0032 Wealth Tax

0033 Gift Tax

4.Type of Transaction

Code Description

001* Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in a banking company to which the Banking

002* Payment made by any person against bills raised in respect of a credit card aggregating to two lakh rupees or more in a year.

003 Receipt from any person of an amount of two lakh rupees or more for purchase of units of a Mutual Fund.

004 Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by a company or institution.

005 Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by a company.

006* Purchase by any person of immovable property valued at thirty lakh rupees or more

007* Sale by any person of immovable property valued at thirty lakh rupees or more.

008 Receipt from any person of an amount of five lakh rupees or more in a year for investment in bonds issued by Reserve Bank of India.

*Transactions for these codes is populated from Financial Year 2013 onwards.

Glossary

Abbreviation Description

AIR Annual Information Return

AY Assessment Year

EC Education Cess

Abbreviation Description

TDS Tax Deducted at Source

TCS Tax Collected at Source


dear all, · per form 26as but wrongly declared presumptive income u/s.44ad as rs.11,53,220.00. ......

Documents