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Avoid penalty

Aditi Iyer (Direct Tax Consultant) (61 Points)

04 July 2012

Client has defaulted in payment of all taxes including income tax, vat, profession tax, epf, esi etc. Client was not able to attend his office and accountant defrauded the company for 8months beginning april and ran away with all the money. After a new accountant was appointed there was no money to pay the taxes. Hence the entire tax liability for AY2012-13 is pending. Assessee is ready to pay interest but how can we avoid penalty?

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pahuja (C.A Final Student ) (472 Points)
Replied 04 July 2012

Hi Aditi

You may move to appeal as per following manner to appropriate authority in the due course to avoid the proceedings of penalty provisions.

PROCEDURE FOR APPEAL AT A GLANCE

Particulars	246A	254	260A	261

Appellate Authority	CIT (A)	ITAT	Supreme Court	Supreme Court
Time limit for Appeal	30 days from the receipt of the order	60 days from the communication of the Order	120 days from the communication of the order of ITAT	90 days from the date of Order of Supreme Court
Time limit for disposal of Appeal	1 Year from the end of the FY	4 Year from the end of the FY	As per Court procedure	As per Court procedure
Application Form	35	36	As per Court procedure	As per Court procedure
Stamps to be affixed	0.50P	0.50P	As per Court procedure	As per Court procedure
Fees to be Paid
Returned Income upto Rs1 Lac	Rs 250	Rs 500	As per Court procedure	As per Court procedure
More than 1 lac upto Rs 2 Lac	Rs 500	Rs 1500	As per Court procedure	As per Court procedure
More than 2 lac	Rs 1000	1 % of income (Max Rs 10,000)	As per Court procedure	As per Court procedure
Appeal for other than Income	Rs 250	Rs 500	As per Court procedure	As per Court procedure
Stay of Demand	Not Possible	Possible against order of CIT(A)	Possible	Possible
Recovery of Tax	No power to stay the recovery of Tax	Final order should be passed within 180 days from the stay order so passed	-	-
Minimum Tax to be paid for filling appeal	If Return is Filled: Tax due on Returned Income If Return not Filled: At least the Advance tax payable	Rs 2,00,000/- + Question of Law	Rs 4,00,000/- + Question of Law	Rs 10,00,000/- + Question of Law