Reply to Notice for Penalty under section 274 read with section 272A(1)(d)

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Chithu.E.K

Chithu.E.K (Querist)
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23 February 2022 I have received a Notice for Penalty under section 274 read with section 272A(1)(d) stating that “You are required to show cause as to why an order imposing penalty of Rs. 10,000/- per default u/s 272A(1)(d) of the Income-tax Act,1961 should not be passed .”
Request to help me to share the letter format for dropping the penalty

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 When responding to a notice for penalty under section 272A(1)(d) of the Income-tax Act, 1961, it's crucial to provide a clear and detailed explanation to the tax authorities. Here’s a format you can use to draft your response:

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[Your Name]
[Your Address]
[City, State, PIN Code]
[Date]

The Assistant Commissioner of Income Tax
[Address of the Tax Office]
[City, State, PIN Code]

Subject: Response to Notice for Penalty under Section 272A(1)(d) of the Income-tax Act, 1961

Sir/Madam,

I am writing in response to the notice dated [Date] received from your office regarding the proposed penalty under section 272A(1)(d) of the Income-tax Act, 1961.

I respectfully submit the following points for your consideration:

1. **Background:**
- Provide a brief background or context regarding the default(s) mentioned in the notice. Mention any relevant dates and transactions involved.

2. **Reasons for the Default:**
- Explain the reasons why the default occurred. This could include inadvertence, technical issues, or any other genuine reasons.
- If applicable, mention any steps taken to rectify the default promptly after becoming aware of it.

3. **Compliance History:**
- Highlight your compliance history, particularly if there have been no previous penalties imposed or if the defaults were unintentional and promptly rectified.

4. **Supporting Documents:**
- Enclose copies of relevant documents that support your explanation. This could include transaction records, communications with tax authorities, or any other relevant evidence.

5. **Request for Dropping Penalty:**
- Respectfully request the tax authority to drop the proposed penalty considering the circumstances explained above and your compliance history.

6. **Conclusion:**
- Express willingness to cooperate fully with the tax department and provide any further information or clarification required.

I trust that the above information adequately addresses the concerns raised in your notice. Please feel free to contact me at [Your Phone Number] or [Your Email Address] if you require any further clarification or information.

Thank you for your attention to this matter.

Yours faithfully,

[Your Name]

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**Note:**
- Make sure to customize the letter as per your specific details and the content of the notice received.
- Attach copies of any supporting documents mentioned in your response.
- It’s advisable to send the response via registered post or courier to ensure delivery confirmation.

This format should help you draft a comprehensive response to the notice for penalty under section 272A(1)(d) of the Income-tax Act, 1961.