DEMAND U/S 271B OF INCOME TAX ACT

This query is : Resolved

Sonam (Querist)
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08 October 2022 Assessee received notice u/s 147 of IT Act and after the closure of Assessment there was refund of Rs 440000/- . After that penalty proceedings was initiated for the aforsaid AY and they determined penalty for Rs 148000/- . Now i want to know whether this penalty will be automatically adjusted with the corresponding refund amount or penalty amount needs to be paid in cash.
Note: Assessment order determining refund was passed in Mar 2022 and refund is not yet issued
and penalty order was passed on 15.09.2022 asking to pay it within 30 days.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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08 October 2022 1. Hope the proceeding for the penalty and refund order are for same AY. &
2. The penalty amount has not adjusted the refund amount.
3. Write a letter to your J ITO to adjust the penalty against the refund amount, with a request to quash the order after adjustment of the demand against the refund order; & pay the balance amount at earliest. Keep the acknowledgement.

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