Penalty u/s 275(1A)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2011 are sec 275(1A) applicable also on appeals pending before High Court and Supreme Court? the reason of query is penalty shall not levied if a question of law is present.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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25 June 2011 YES if the appeal has been filed against the order of ITAT before any High Court the provision of Section275(IA) shall come into play and no penalty is to be imposed till the final order of High Court or Suprime Court is received.

It is immaterial whether any question of law or question of fact is involved in the matter. The High Court shall not admit any appeal if any question of facts are involved. If mixed question of law and facts are involved, The High Court can admit the appeal and only admitted appeals are disposed by a speaking order either in favour of the assessee or in favour of the Department.

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2011 thanx sir,

but as per sec. 275(1A), ao can pass the penalty order, either case is pending before CIT/CIT(A)/ITAT/HC/SC. AFTER Final decision of authority, ao can pass rectification order u/s 275(1A) with in 6 months from end of month in which order is received by CIT.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 June 2011 Once you have filed the appeal it is your duty to inform the assessing officer that you have filed the appeal. Even if you failed to do so the AO cannot Levey the penalty without issuing notice for Levey of penalty

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2011 Ao first initiate the penalty proceedings along wid assessment order and sens a show cause to assesse. then AO pass penalty order either the appeal is pending wid cit/cit(A)/itat/hc/sc. and after th afinal decision if authorities revised the penalty, then ao pass rectification order 2756(1A).

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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27 June 2011 It is the general feature that along with the assessment order the AO will issue a show cause notice and from his side the work is over. Now, you have to file the Appeal before CIT(A) or thereafter ITAT or High Court. In case the CIT (A)'s effect is given the AO shall continue to issue show cause and in meanwhile if you have filed ITAT then he will not Levey the penalty. The AO has the bright chance if you wait for 60 days to be completed in filing appeal before ITAT. If penalty order is passed you have to file appeal before CIT(A) against that order.

Querist : Anonymous

Querist : Anonymous (Querist)

27 June 2011 all these facts are right sir. i just want to sat that if assesse is not satisfy his assessment of income and assessment order has issued to assesse and penalty proceedings has been initiated by AO and assese went to CIT(A) agst the assessment order then Ao can impose Penalty Order on basis on asessment order had been passed by him, he need not wait for decision of CIt(A) regarding assessment of income.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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27 June 2011 What this section speaks about. It speaks about time barring of the order for imposition of penalty. Under no circumstances the AO can levy the penalty prior to 6 months and the same has been stated in my last reply. Refer b) of provided. But AO cannot will for the assessee to consume 6 months and accordingly he will pass the order.

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