Sec 131

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 January 2013 Assessing officer (Dy. Commissioner of Income Tax) had issued summons u/s 131 in the name of the director of a company due to improper compliance of scrutiny notice for AY 2010-11.

Now the company is going to make compliances properly. Also company is filing a letter in front of Assessing Officer with a request that since the director is out of station, he would not be able to attend the date.

What consequences can the company or director face in such a case? Please advise. Its urgent.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 January 2013 Penalty of Rs 10000/-has been prescribed U/s 272A.

Querist : Anonymous

Querist : Anonymous (Querist)

11 January 2013 Thankyou Sir. Apart from this penalty, what other consequences can occur?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 January 2013 In any case a reasonable opportunity of being heard is provided. Levying a penalty is a discretionary matter of the AO and as far as other consequences are concerned, these depends upon the facts of the case. However, it is certain that by non-compliance , you can not make happy to any authority.
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Various issues are involved in an IT case which depends upon the judgement of an AO, who also remains under pressure to complete the proceedings. If an assessee co-operates with him, the AO can make the case in assessee's favour.
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So, in spite of thinking about other consequences, it is better to call back the director from the out station and make a impression in the mind of the AO as a Compliant-Assessee.

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