Re: Penalty u/s 271F-Penalty for failure to furnish return of Income .
The Assessee was not filed return of income for AY 2013-14 though his income was taxable. Further on receipt of notice u/s 148 he filed his return within 30 days. AO passed order u/s 143(3)/147, against which he filed appeal. AO issued notice for penalty u/s 271F, assessee requested for kept in abeyance till disposal of appeal. Thereafter assessee opted for VSV and Form 5 has been issued by Jurisdictional PCIT. Now he received notice for penalty proceedings u/s 271F again. What is remedy?
The assessee has to furnish reply on merit , what was the reasonable cause for not filing of the return as per section 139 (1) of the Act . As per section 273B penalty is not leviable if the assessee proves that there was reasonable cause . Please refer Circular No . 21/2020 dt .4th December , 2020. Q.No 80 . Whether appeal against penalties that are not related to quantum assessment like penalty u/s 271B 271BA , 271DA of the Act etc. are also waived upon settlement of appeal relating to ‘ disputed tax ‘ ?
Ans : No , appeal against such penalty order is required to be settled separately .
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