Notice u/s 271f

Tax queries 964 views 2 replies

How to reply for Notice u/s 271F ? What will be penalty if I don't reply on date ?

Replies (2)
It is requested to kindly keep the following submissions on record before imposing any penalty u/s 271F:
1) The discretion given to the Income –tax Officer u/s 271F of the Income-tax Act should be used judiciously and not as a rule.
2) I/We were not liable to file Income tax return, being income being below the maxium amount not liable to tax.
3) On scrutiny assessment, AO had make addition on estimated bases based on lower withdrawal for house hold expenses. Or fluctuation in GP. The addition was so nominal that it is not possible to go for appeal as the expenses and fees for consultant was greater than the addition made by AO. So we paid the tax.
4) Even 271(1) (c) was not imposed because the addition was not because of concealment. So we request you not to impose the penalty u/s 271F considering our return as voluntary return and not to treat it as taxable return.
However opportunity of being heard is accorded in case of any adverse view from your side.We will always ready to give further information/co operation if requires.
Yours Faithfully, ""
penalty is 5000 rupees under 271F


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