271F
This query is : Resolved
07 February 2011
dear sir,
an assessee had voluntarily filed return after End of the relevant assessment year.
On scruitiny assessment, AO made addition grossly based on lower withdrawal for household expenses. Nominal tax was demanded i.e. nearly 1600.chalan was paid by the assessee.
Now AO has issued notice u/s 271F.Reply of the assessee is reproduced as under. But AO has issued final opportunity considering that - Reply given by the assessee is not acceptable.
""
Respected Sir,
Sub: Reply to Show Cause Notice Imposing Penalty.
Ref: Your notice No. ________________________
Assessee : ________________________
PAN : __________
A.Y. : 2007-08
We are in receipt of your above captioned notice. In this connection, I beg to submit as under:
The Return of income for the A.Y. 2007-08 was filed by me/us on________ vide acknowledgement receipt no. __________.
As per the provision of section 139, any person may furnish the return of income for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
It is further stated that the my client filed the return of income for A.Y. 2007-08 voluntarily, before issuance of notice u/s 142(1) of the Income-tax Act,1961.
It is further 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)© 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, ""
IS THE STEP TAKEN BY AO VIABLE ? WHAT SHOULD BE DONE ?
PLEASE REPLY.
an assessee had voluntarily filed return after End of the relevant assessment year.
On scruitiny assessment, AO made addition grossly based on lower withdrawal for household expenses. Nominal tax was demanded i.e. nearly 1600.chalan was paid by the assessee.
Now AO has issued notice u/s 271F.Reply of the assessee is reproduced as under. But AO has issued final opportunity considering that - Reply given by the assessee is not acceptable.
""
Respected Sir,
Sub: Reply to Show Cause Notice Imposing Penalty.
Ref: Your notice No. ________________________
Assessee : ________________________
PAN : __________
A.Y. : 2007-08
We are in receipt of your above captioned notice. In this connection, I beg to submit as under:
The Return of income for the A.Y. 2007-08 was filed by me/us on________ vide acknowledgement receipt no. __________.
As per the provision of section 139, any person may furnish the return of income for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
It is further stated that the my client filed the return of income for A.Y. 2007-08 voluntarily, before issuance of notice u/s 142(1) of the Income-tax Act,1961.
It is further 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)© 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, ""
IS THE STEP TAKEN BY AO VIABLE ? WHAT SHOULD BE DONE ?
PLEASE REPLY.
Guest
Guest
(Expert)
07 February 2011
When the return was filed.
08 February 2011
return for AY 2007-08 filed on 22.03.08
Message likes :
1 times
Guest
Guest
(Expert)
08 February 2011
Penalty u/s 271F is not leviable as the return was filed before the end of a.y.
12 February 2011
what if it is filed on 03.05.08 ?
Guest
Guest
(Expert)
14 February 2011
and if there is taxable income, penalty may be levied.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Capital gain consideration
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
Trending Online Classes
CAclubindia
