Applicaton u/s 271 1(c)

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Dinesh Gupta (Querist)
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22 January 2011 One my client deposit rs 15000,10000 & 10000 in name of House wife's persnal savings.
A O added in income and tax applicable rs 3500/-
and AO Attach notice with Assement order u/s 143(3) for penalty u/s 271 1(c)

Pls provied me formate & suggetion of don't penalty impose thanks

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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22 January 2011 You have only option to go for appeal, with a ground that, no concealment or wrong statement was given by your client.

Ratan Sharma

Ratan Sharma (Expert)
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22 January 2011 File a reply in response to notice u/s. 271 (1)(c).
1. That there is no concealment of income or furnishing inaccurate information.
2. That the assessee has without creating litigation , paid the tax due as per the assessment order passed u/s. 143(3) and not created any dispute with the department.
3. That the assessee co-operated with the department during assessment proceedings.
4. That the assessee is a honest tax payer, regularly filing his return of income and paying the tax due.
In view of the above it is prayed that the penalty proceedings may kindly be dropped in the interest of justice.
Generally the A.O. do not impose penalty u/s. 271 (1)(c) for such a meagre amount but he issue a penalty notice. Also it is difficult for him to pass penalty order , as he has to take the prior permission of the Additional Commissioner of Income Tax before levying penalty. A.O. will dropp the penalty proceedings. However even if the penalty order is levied then you can file the appeal with CIT ( Appeals ). It is mandatory for the department to prove that there was mens rea and AO is having concrete proof without doubt on record. you will win.

Dinesh Gupta

Dinesh Gupta (Querist)
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02 February 2011 Have a nice day
If I file appeal to CIT Appeal of penalty us 271 1(c), Can CIT Appeal added addtion assese income or penalty increase.

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