Reply to notice

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sanath (Querist)
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09 January 2012 A notice under Sec 274 has been served asking to showcause why Penalty under Sec 271(1)(1)c shouldn't be served on an order passed by AO.
In the order that AO has passed, we are intending to contest one of the two points, while accepting the other point.
How do I reply to the notice.

Thank You

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 January 2012 The reply may be drafted on the following lines :-
1. That you have maintained true and correct accounts.
2. That you have not concealed the income during the year under assessment.
3. That you have not given inaccurate particulars of the income.
4. That aggrieved by the assessment,you are seeking an appeal before the CIT (Appeals).
Conclude with a prayer that, in view of the above, the proposed penalty proceedings may be dropped.

sanath

sanath (Querist)
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10 January 2012 Dear Sir,

This is in respect of a salaried person who has let out a property. The AO wants rent deed etc. Im arguing that boooks/accounts needn't be maintained in respect of income from house property and that all rent has been received in cash.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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21 July 2025 Here’s a clear and professional draft reply to the Sec 274 showcause notice based on the points you mentioned — contesting one issue, accepting the other, and explaining your position:

Draft Reply to Showcause Notice under Section 274

To,
The Assessing Officer,
[Address]

Date: [Insert Date]

Subject: Reply to Showcause Notice under Section 274 of the Income Tax Act, 1961 – Penalty under Section 271(1)(c)

Respected Sir/Madam,

With reference to the showcause notice dated [insert date], issued under Section 274 of the Income Tax Act, 1961, relating to the penalty proceedings proposed under Section 271(1)(c), I respectfully submit the following for your kind consideration:

Maintenance of Accounts:
I have maintained true and correct accounts of my income and financial transactions to the best of my knowledge and belief.

Disclosure of Income:
I have not concealed any income nor furnished inaccurate particulars of income during the assessment year [mention year].

Regarding the Disputed Points:
While I accept the correctness of one of the points raised by the Assessing Officer, I respectfully contest the other point on the grounds that [briefly mention your grounds for contesting – e.g., explanation, supporting documents, legal provisions].

Intention to Appeal:
Being aggrieved by the assessment order, I have filed/an intention to file an appeal before the Commissioner of Income Tax (Appeals) against the points I contest.

In view of the above, I humbly request you to kindly drop the penalty proceedings proposed under Section 271(1)(c).

I am willing to provide any further information or documents that may be required in this regard.

Thanking you,

Yours faithfully,
[Your Name]
[Your PAN]
[Your Address]
[Contact Details]

Additional Notes for Your Situation (Rental Income & Rent Deed):
Regarding the AO’s request for rent deed and accounts, you may add:
“With respect to the rental income, I would like to submit that under the Income Tax Act, there is no mandatory requirement for a salaried individual to maintain separate books of accounts for income from house property. Moreover, the entire rent has been received in cash, and I am willing to provide any other relevant documents as proof of receipt.”

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