I am a salaried employee and there was a cash credits in my account in April-2009 and hence my case was selected for scrutiny for AY 2010-11.
Although I have furnished the sources of cash credits in my bank account, it was not satifactorily accepted by AO and hence AO passed the order of tax amounting approx Rs. X,00,000/-
This amount includes interest as well calculated u/s 234B
Now, my case is in appeal and I have paid 50% of the amount of tax demand and obtained stay for remaining 50% amount. The stay obtained is till Mar-2015. Appeals proceedings are initiated. I am waiting for final hearing now.
I have following questions:
1. If CIT Appeals do not give result from my side, then I have to pay remaining 50% of the tax amount. Will I have to pay interest on this amount?
As order of demand have included interest already and contains final amount. Also, in the stay letter it is not mentioned anything about interest.
2. Also, there will be penalty ITO will be charging to me. To whom I can apply for penalty wave off? Joint commissioner or in CIT Appeals?
3. If my hearing does not come before till Mar-2015 and my stay is also not extended beyond that, then AO will demand for the remaining 50% of the tax. So will AO will initiate penalty proceedings as well?
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