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penalty

Gagan Aggarwal (226 Points)

25 June 2018

penalty in case of disallowed of expenses by the AO, in case of business income....

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 June 2018

Originally posted by : Gagan Aggarwal
	penalty in case of disallowed of expenses by the AO, in case of business income....

Query not cleared

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Gagan Aggarwal (226 Points)
Replied 25 June 2018

how much penalty should be levied in case of disallowed of expenses in the business by the AO...

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 June 2018

Originally posted by : Gagan Aggarwal
	how much penalty should be levied in case of disallowed of expenses in the business by the AO...

https://www.quora.com/What-is-section-37-1-of-income-tax-act

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 25 June 2018

@ P M Raja Sir, (I read it now)

Whether query was for condonation for delay in filling return?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 June 2018

Originally posted by : Dhirajlal Rambhia
	@ P M Raja Sir , (I read it now) Whether query was for condonation for delay in filling return?

Yes... Sir...

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 25 June 2018

Here first condition is the return should not have been filed earlier........

The facility is available for last 6 year's returns.

Secondly we have to check the amount of TDS deducted as per form 26AS...... along with the income earned over which TDS was deducted....

Most of the times it is not advantageous to file return, after checking net refund due. So, prepare the ITR based on the income/s as declared under form 26AS and also bank statements (for any income received without TDS dedction/s)

To continue...

Gagan Aggarwal (226 Points)
Replied 25 June 2018

in this case return was properly filed within due date...after that if some expenses are disallowed by the AO..then how much penalty should be levied....

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 June 2018

Originally posted by : Dhirajlal Rambhia
	@ P M Raja Sir, (I read it now) Whether query was for condonation for delay in filling return?

Sir.,

This reply for Comment section or any other Sir...?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 25 June 2018

Yes (from comments section)

Once it is determined any refund due after fulfillment of all the tax liabilities, the assessee has to apply (manually) requesting to allow filling ITR u/s. 119(2)(b) of IT act, and condon the delay or not filling return for some genuine reason/s.

There is no particular format for the application, but reason given should be appealling. The application should contain a copy of form 26AS along with computation sheet with the working of refund amount.

Where to apply, how to apply etc.. is better explained in the link....

When the permission is granted, one can file the ITR online with reference to the permission number, as usually ITR is filed...... & verified....

Rest is CPC to follow up.....

Hope everything clear now......

1 Like

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 June 2018

Thank You for the details Sir...

What is the exact use in Online Requset in Assessee's login ID...

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Gagan Aggarwal (226 Points)
Replied 25 June 2018

@ dhirajlal Rambhia..in this case return was properly filed within due date...after that if some expenses are disallowed by the AO..then how much penalty should be levied....

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 25 June 2018

@ Gagan Aggarwal........

1. Provisions of section 271(1)(c) provides for imposition of penalty for concealment of income i.e. such a penalty can be imposed only when the assessee has:

a.Concealed the particulars of his income; or

b.Furnished inaccurate particulars of income.

2. Penalty would only be levied by the Assessing Officer, CIT (A) or CIT during any proceedings under the Income Tax Act, 1961.

3. The penalty is in addition to tax and interest, if any payable by the assessee.

4. Penalty u/s 271(1)(c) shall be leviable only if the assessing officer is satisfied that the assessee has concealed the particulars of his of his income or has furnished inaccurate particulars of income.

5. The minimum amount of penalty is 100% of the tax sought to be evaded and maximum amount shall not exceed 300% of the amount of tax sought to be evaded.

SATISFACTION OF ASSESSING OFFICER

Concealment of particulars of income or furnishing inaccurate particulars of income is the condition precedent for levy of penalty and such satisfaction must be arrived at in the course of any proceeding under the Act. Furthermore, such satisfaction is to be arrived at from the accounts of the assessee. Certain judicial precedents on the issue are as under:-

1. Honorable Supreme Court in D.M. Manasvi 86 ITR 557 (SC) held that satisfaction of theconcerned tax authority to the effect that the assesse has either concealed the particulars ofincome or furnished inaccurate particulars of income is the condition precedent for levy ofpenalty and such satisfaction must be arrived at in the course of any proceeding under the Act.

2. Full Bench of Punjab & Haryana High Court in the case of CIT vs. Mohinder Lal 168 ITR 101, held that it is the satisfaction of the ITO in the course of assessment proceedings regarding the concealment of income which constitutes the basis and foundation of the proceedings for levy of penalty.

Gagan Aggarwal (226 Points)
Replied 25 June 2018

@ dhirajlal Rambhia..in this case return was properly filed within due date...after that if some expenses are disallowed by the AO..then how much penalty should be levied....