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Arithmetical Error in Form 16 issued by an Employer

Tax queries 772 views 1 replies

haritngandhi

14 Points Posted on 07 July 2009

Two years before one of mine friend has filed return based on Form 16 issued by his company. Later on it is found by Income Tax Department that there was an arithmetical errors in Form 16 issued by an employer. Now because of that error he has claimed a refund for Rs.110,000. On receipt of notice from Income Tax Department he has paid amount recevied along with interest to Income Tax Department. Now he got a penalty order from Income Tax Department for Rs. 105,000. Now he came to with so we decided to go for an appeal.

Please advice me on this issue

Replies (1)

M.M.SURANA

Director -Taxation

532 Points Posted on 08 July 2009

Mr. Harit ,

U hav not furnished the conplete detail. In which sec. AO has imposed the penalty. I feel that it should be 271(1((c) for funishing inaccurate particulars in return. Normally AO issued the show cause notice before imposition of penalty under above sec. and assssee should give opportunity to prove that it is not his mistake or wilful act. If AO is not satisfy and Assessee fail to prove than only AO impose the penalty. It is not your wilful act it is artmatical error U can prove easily. The Form 16 was issued by the tax deductor not by U..

Surana.Chennai

9952967237