Penalty u/s 271(1)(c)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2010 During the course of assessment u/s 143(3), the AO dsallowd certain expenses and added a sum of 10 lakhs as addition and he also initiated the penalty procedings.

Now the AO has sent the notice for penalty proceedng and also attached the challan for payment of penalty which is 100%.

Now the assessee, who has paid the tax on account of the addition of 10 lakhs, wishes to appeal against the penalty imposed.

MY QUERY IS THAT, WHETHER THE PENALTY AMOUNT NEEDS TO BE PAID BEFORE FILING AN APPEAL OR A STAY NEEDS TO BE OBTAINED, IF YES UNDER WHAT PROVISIONS

REGARDS

CA Shiv

CA Shiv (Expert)
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01 July 2010 Penalty amount not to be paid right now. After filing an appeal, make an application to the Ao for the fact that the assessee has appealed with the ITAT.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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01 July 2010 Penalty proceedings are seperate from normal scrutiny proceedings.

From the above it seems that the assessee has accepted the A. O.'s order for normal assessment but wants to file an appeal against the penalty levied by the A. O. against the CIT(A).

So u can go in appeal against the penalty order and also apply for stay of demand of penalty with the A. O. along with copy of any judgement in your favour any u can also reply on the latest judgement of reliance petro on Section 271(1)(c).

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