Penalty proceedings u/s 271(1)(c) in abeyance

This query is : Resolved

RAJIV (Querist)
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17 December 2012 Dear,

We have received an order of penalty u/s 271(1)(c) for a case against which an appeal has been filed in high court.

Now we want that penalty proceedings should be in abeyance.

Can you specify under which section or rule this abeyance can be done.

MEHUL SHAH

MEHUL SHAH (Expert)
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17 December 2012 There is no Section as such. You can simply write a Reply to Assessing Officer.

However, if AO is not satisfied then he may still pass a Penalty order. Now you appeal to CIT(A) against Penalty order and file a Stay Petition to CIT.

Once Stay Petition is rejected by CIT, you can file stay petition to ITAT and only then client can be releived of Demand Proceedings.