Holding valid PAN but not filed return of income may invite income tax notice as per new software of ITD

Holding valid PAN but not filed return of income may invite income tax notice as per new ITBA software functionality of ITD for non/stop filers

Income Tax Department has Rolled out a comprehensive functionality to view List of Income Tax Returns Non-Filers/Stop filers for issue of notice under section 142(1) calling for return of income from such stop/non  filers and  also initiation  of  ex-parte proceedings under section 144 against persons who had not complied with 142(1) notice screen.

Now the Assessing Officers can generate the List  of  Non-filers/Stop  filers based  on  the defined criteria for Non filers and Stop filers in Income Tax Business Application (ITBA).

Criteria for generation of non filers:

Any person holding valid PAN who has not filed the return for the relevant AY as well as for preceding three A.Y.s.

Criteria for generation of stop filers:

Any person holding valid PAN who has not filed the return for the concerned Assessment Year but had filed the return for any of the preceding three A.Y.s.

Issue of Notice:

(a) for the purpose of issue of notice,  the list displays the last communication address which can however be edited with a new communication address. By default, 15 days time is allowed for compliance which can be changed for any other period for compliance.

(b) The AO has been given option to generate a clarification  letter instead of statutory notice u/s 142(1) on first hand. 

(c) The Notice so generated  will  go to e-filing account and email of tax payer. The assessee can respond to the notice by

(i) filing return
(ii) intimating the fact that filing of return is not required.

Once return is filed, the proceedings u/s. 142(1) will be closed and case will automatically be removed from the list of stop filer/non filer.

(d) If the AO is satisfied from the response of assessee that no return is required to be filed, proceeding u/s 142(1) so initiated can be closed.

(e) Where notice  is issued but  no return is filed against any PAN, the Assessing Officer shall have 2 options:

(i) Initiating Best judgment Assessment u/s 144
(ii) Initiating Proposal u/s 147 for reopening of the case.

(f) In case return is filed after due date then either AO can accept the return as valid or mark the return as invalid

(g) The AO also have the facility for uploading manually issued Notice u/s 142(1)(i) in the ITBA.

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addition u/s 68 addition u/s 69A ca misconduct cash deposit in bank cbdt circular CBDT Instruction cbdt notification cbdt order cbdt press release cgst circular cgst notification cit revision 263 concealment penalty condonation of delay covid-19 custom circular demonetisation due date extension e-way bill faq GST circular GST Council Meeting gst faq gstn advisory GSTR-3B GST rates IBBI ibc income tax prosecution itat ITAT Delhi mca circular MCA notification order u/s 119 penalty 271(1)(c) penalty u/s 271(1)(c) Press Release reasons recorded reopening 148 Reopening us 147 Search & Seizure sebi circular unexplained cash credits validity of notice u/s 148 Withdrawal of 2000 500 Bank Notes