Re: Penalties levied u/s 271A (44AA) & 271B (44AB)
Penalties have been levied on my client u/s 271A for not maintaining books of accounts u/s 44AA & also u/s 271B for not getting the said books of accounts audited u/s 44AB for the same assessment year. These proceedings have been initiated under separate notices issued under separate sections and as such are two different penalty proceedings. I wish to settle Penalty u/s 271A but continue to contest penalty u/s 271B. Is it possible to do so without impacting or influencing the outcome of the future proceedings u/s 271B due to acceptance and settlement of penalty u/s 271B.
As we understand, there are two separate penalty appeals. As per explanation to Section 5 of VSVA, a declaration under this Act shall not amount to conceding the tax position and it shall not be lawful for the income-tax authority or the declarant being a party in appeal or writ petition or special leave petition to contend that the declarant or the income-tax authority, as the case may be, has acquiesced in the decision on the disputed issue by settling the dispute.
Therefore, the settlement should not impact the outcome of the other penalty proceedings.
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