Re: PENALTY OF 271(1)(C) AFTER OPTED FOR VSV SCHEME

SIR I HAVE OPTED FOR VSV SCHEME AND FORM 5 HAS BEEN RECEIVED IN RESPECTED CASE AFTER THAT I HAVE RECIEVED THE NOTICE OF PENALTY PERCIDING 271(1)(C) WHAT TTO DO ?

The assessee should send a  reply to the notice stating that  the assessee has opted VSV Scheme for the year under consideration  hence the penalty proceedings initiated may be dropped .  The assessee also furnish the relevant documents along with reply .  Please  refer Circular No 9/2020 dt 22 -4 -20200,   Q. No. 45 and answer ,  it is specifically stated that As per section  6 subject to the provisions of  section  5 , the DA shall not institute any proceedings in respect of an offence , or impose or levy any penalty ; or charge any interest under the Income -tax Act in respect of tax arrears. This shall be reiterated in the order under section 5 (2) passed by DA .   The assessee may also write stating that in case the Assessing Officer decided to proceed further one more opportunity of hearing may be given to the assessee.   

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