| Question And Answer | |
|---|---|
| Subject: | imposition of penalty u/s 271(1)(C) |
| Category: | Income-Tax |
| Querist: | vijay rastogi |
| Answered by: | Reply of the Expert is awaited; |
| Tags: | penalty u/s 271(1)(c) |
| Date: | October 14, 2024 |
a registered firm purchased some item from a registered dealer having valid GST number, the goods were delivered through E-WAY BILL, but while making payments after some time assessee came to know that firm has been closed and registration is also cancelled therefore payment could not be made during the relevant financial year and shown as outstanding in his balance sheet. The department treated this as bogus transaction and added to his income after issuing 142(2) followed by 148, therefore a huge demand is created. the department issued a demand stating that if total demand along with interest is deposited with in 30 days then no penalty proceeding will be initiated. accordingly assessee deposited the entire amount within specified time , but later on department has issued notice for initiating proceedings u/s 271(1) c. please suggest what steps to be taken
Reply of the Expert is awaited. Please check back later
The assessee has to reply on the merits for not levy of penalty under section 271(1)(c) eg. estimate addition, audited accounts, maintenance of quantity records.