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?