Section 271 (1) (c)

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2011 A.O. has made addition of Rs. 800000/- in the case of concealment and furnishing inaccurate par of income and not made use of Section 271 (1) (C). But passed the order by leving int. u/s. 234A, 234B, 234C and 234D.

Who has the authority to impose it and within what time-limit??

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

28 December 2011 Penalty proceedings are initiated by the AO who has passed the order. The penalty proceedings should be initiated at the time of passing the assessment order.

The penalty proceedings are initiated by issuing a show cause notice for levying penalty. Penalty proceedings are separate from assessment proceedings. A separate order will be passed for levying penalty.

If the penalty proceedings are not initiated by the AO at the time of passing the assessment order, then such proceedings cannot be initiated later on by ANY AUTHORITY.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

28 December 2011 Siddhartha Ji
The last para needs reconsideration because the CIT and the CIT (Appeals) has power to initiate penalty proceedings u/s 271(1)(c) of the IT Act,1961.

Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2011 still need more explanation?