Notice for penalty proceedings u/s. 271(1)(c)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2015 One of my client is a medical practitioner. He submitted his Return for the Assessment year 2012-13 and the same was processed u/s. 143(1). His main source of income is Salary from a Nurshing home. Before 2 years approx. his employer was raided and some register containing the names of doctors who have been paid for their professional services. It was stated by his employer that when a paitent request to call a particular doctor, they call him and the fee realsied from the paitent is paid to him, maintaining a register for the same. My client is an anasthesian and employed by the Nurshing home and he has been paid salary for the services rendered by him. He has produced all his bank accounts and submitted his balance sheet alongwith the Return, wherefrom it appears that nothing has been credited to his account other than salary. Please advice what reply should be given to the Assessing Officer, who has issued Notice u/s. 271(1)(c) for imposition of penalty. Please also furnish the details of judgement of High Court and Supreme Court. Your early reply in this matter will be highly appreciated.

CA Mohit Bansal

CA Mohit Bansal (Expert)
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16 April 2015 Hi,

Here AO does not have any right to ask for penalty for concealment of income if there is no proper evidence available with regarding concealment(e.g. receipt with employer for cash payment paid to assessee). Notice is ultra vires. For further discussion you may put your query on bmohit02@gmail.com