Scrutiny case very urgent

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2011 DEAR SIR
DURING THE COURSE OF SCRITINTY CASE U/S 143(2) , THE AO FOUND RS 100000/- UNSECURED LOAN. WHICH IS RECEIVED IN CASH BY DIFFERENT PARTIES LESS THAN RS 20000/- FROM EACH PARTY. THE ASSESEE FILED CONFIRMATION AND AFFIDEVITS OF ALL THE LOAN CREDITORS, BUT AO DEMAND TO PERSONAL PRESENCE OF LOAN CREDITORS. BECAUSE OF HARDSHIP AND TO TAKE OF PIECE OF MIND , THE ASSESSEE SURRENDER RS 100000/- AS INCOME FOR NON- LEVING OF PENALTY U/S 271 ( 1((C) . BASIDES THIS THE AO LEVY 100% PENALTY ON THE TAX DEMANDED. BUT WHILE DRAFTING HIS ASSESSMENT ORDER. THE AO CLAERLY SPECIFIES THAT THE ASSESSEE SURRENDER THE LAON CREDITORS ON THE CONDITIN THAT NO PENALTY WILL BE IMPOSED. WHAT IS THE REMELY AVAILIABLE TO ASSESEE, IS APPEAL PLAESE DRAFT A APPEAL FORMAT

THANKING YOU

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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04 December 2011 Appeal Formats require the study of the order. It is better to assign the work to a CA , who is looking after appeal matters.

Ratan Sharma

Ratan Sharma (Expert)
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05 December 2011 Penalty proceeding is a different thing how A.O. can levy the penalty in the assessment. He might have initiated penalty proceedings only which is imparative on his part. You should reply to the notice. However even if penalty is levied you should file the appeal with the CIT ( Appeals ). You will definately get the relief from penalty as it is on the part of A.O. that the assessee has delibrately concealed the income. Mere surrender of income does not attracts penalty automatically. File appeal after taking advise from expert. No need to worry.

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