143(3), 271(1)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 A person is liable to pay tax and penalty u/s 143(3), 271(1)(b) & 271(1)(c).Is there any way to prevent the Penalty?

Deepak Agrawal

Deepak Agrawal (Expert)
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12 February 2013 The person should demonstrate that whatever claim for deduction of expenses made, was on bonafide belief of the assessee and there was no concealment of income made by made by the assessee.

in the normal course of practice, the AO mostly initiate or levies the penalties, which is not final always.

In this case, if the notice is issued u/s. 274, then a proper reply letter should be filed by the assessee before the AO, explaining and justifying all the facts and circumstances of the case.

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2013 the scrutiny was for the assessment year 2009-10 and all the due dates have been passed what are the options available. the assessee hasnt complied with any notices

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Deepak Agrawal

Deepak Agrawal (Expert)
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13 February 2013 The AO has power to make best judgement assessment u/s.144 or reassessment u/s. 147. The assessee has no option to file any reply for notices received, as time barred, it will not be accepted.

Better course of action is to discuss with the AO about the facts and circumstances and close it.