Tax Notices & Litigation Services

Tax litigation means any legal action, claim, proceeding, arbitration, suit, investigation or other dispute resolution process or regulatory agency action relating to Tax. Tax notices are a way of communication by the Income-tax department for various tax-related purposes.

Tax notices and litigation services

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Table Of Contents

Overview

You shall be surprised upon receiving an intimation/notice from the Income-tax department although your Income-tax return is filed within the due date. At such times, you may get confused and may not be sure about what it means and how to prepare a response to the same. Also, encountering disputes in opinions from tax authorities, litigations, questionable assessment notices may lead to rough times for any organisation. Hence, it is essential to have a credible consultant for assistance.

At ICI, we will track down your notice/disputes/litigations in detail and offer complete support by handling them on your behalf.

Income Tax Notice

After filing Income-tax return, it is processed by the Income-tax Department. While processing the return, if any mistake/discrepancy/error is noticed in the Income-tax return filed, then the same shall be communicated to the taxpayer by way of an income-tax notice.

There are various notices issued by the Department of Income-tax to the taxpayer under different sections of the Income Tax Act, 1961

NoticesPurposes
Notice u/s. 139(9)If the Income-tax return filed is found to be defective, then notice u/s. 139(9) is issued. E.g., if the return is filed before payment of Self-assessment tax.
Intimation u/s. 143(1)CPC processes intimation sent by the Department of Income-tax after the return filed by the taxpayer.
Notice u/s. 143(1)(a)It is issued seeking response if there are specific
errors/discrepancies or any income is disclosed
less/not disclosed in the Income-tax return filed.
Notice u/s. 143(2)This notice indicates that the return filed by the taxpayer has been selected for Scrutiny by the Assessing Officer.

Notice u/s. 156

(Demand order)

After the assessment of the income, if the tax liability is raised, then Demand order u/s. 156 is issued to taxpayer for the balance tax liability
Notice u/s. 245The communication of adjustment of Income-tax refund against Income-tax liability is made with the notice issued u/s. 245.

Income Tax Litigation/Appeals

Encountering litigations, questionable assessment notices are not only dreary, but at times it also gets prolonged. These also lead the taxpayers to face difficulties to manage such situations; hence it is quite essential to consult the experts to avoid misapplication and effectively clear-out the case. At ICI, we have a team of highly experienced professionals dealing with tax law and litigations. Such professionals being updated with the tax laws will not only inspect each aspect of your tax disputes but also ensure that accurate facts and correct interpretation of laws is being considered in the notice.

FAQs

a. Why is an Income-tax notice issued?

The Income-tax department issues notice/orders for the following reasons:

  • Errors/mistakes/discrepancies found in your Income-tax returns.
  • Incorrect TDS claimed than shown in Form 26AS.
  • Any financial transaction found missing in the Income-tax return filed by the Assessee; however, the Department has the knowledge for the same.
  • The Assessing Officer may require documents and other details from the taxpayer. For this purpose, he may issue an Income-tax notice asking for such documents/details.
  • To carry out scrutiny under provisions of the Income-tax Act.
  • For any other purpose, as the Assessing Officer may deem fit.
b. Can I receive more than 1 Income-tax notice for a particular Assessment year?

Yes, you can receive more than one Income-tax notice by the Department for the same Assessment year. For an instance, you had received Income-tax intimation 143(1) indicating demand, and you filed rectification for the same. However, if this gets rejected, then you may get a second Income-tax order u/s 154 for which further clarification is required to be submitted to the Income-tax department.

c. What if I ignore any Income-tax notice?

It is highly advised not to ignore any notice issued by the Income-tax department. Ignoring notice/demand/order issued by the Income-tax department may lead to penalty and prosecution under the Income-tax Act, 1961.

d. Still have doubts?

Speak to our experts who shall solve all your doubts.
Call us at  +91 7738 066 334  or Mail us at info@indiacompanyincorporation.com

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