Income tax notice under section 148
I have received a notice from the tax department. I need guidance urgently.
Notice: A survey under section 133A of the Income-tax Act, 1961 was conducted in the case of M/s BITCIPHER LABS LLP, which operated the CoinSwitch Kuber (CSK) platform. During the survey proceedings and subsequent enquiries, details of users and transactions carried out on the said platform were obtained and analyzed.
- On analysis of the said information, it is observed that you have undertaken following transactions involving sale of Virtual Digital Assets through the aforesaid platform:
Bitcipher Labs. LLL ||. Transactions in virtual digital assets || 75,55,537/-
Further, on verification of PAN data, it is noticed that you have not filed your return of income for the Assessment Year 2022-23. Therefore, the income arising from the above transactions has not been offered to tax.
- The information available on record, comprising the findings of the survey proceedings and the return of income filed by you, suggests that income chargeable to tax for A.Y. 2022-23 have escaped assessment within the meaning of section 147 of the Income-tax Act, 1961 in your case. Therefore, in terms of section 148A(1) of the Income-tax Act, 1961, you are hereby required to show cause as to why a notice under section 148 of the Income-tax, Act, 1961, should not be issued in your case for the AY 2022-23
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The amount in the notice is the total amount of all the transactions done by me and not the overall profit I made. The overall profit was around 4.5 lakhs and that was the only income I had in the entire year I don't know what to do as I don't have this amount of money to pay taxes. The department has asked for a reply by the 15th april