penalty u/s 271(1)(c)
pkpworld..
(Querist) 05 November 2009
This query is : Resolved
One person filed return which was selected for scrutiny. The case was audited u/s 44AB. The ITO has passed order and demanded 78000/-. The demand raised was for the following reasons : The person has claimed excess depreciation. He had claimed depreciation @ 20% on W.d.v. of block assest instead of 15%. The assessesing officer had disallwoed excess depreciation and accordingly issued demand notice. He also imposed penalty u/s 271(1)(c) of Rs.52000/- for concealment of income and wrong particular of total income.
My query is that :
AS the case was audited by the C.A., the C.A. Should penalised for such mistake. Is there any provision of any penalty for mistake of any CA. The C.A. is a reputed and registered C.A.. Also the assessee was not aware about the various allowable percentage of depreciation, so he had taken help of such CA who also filled the reutrn of income and helped to assesse for filing of return. My point is that Why should the assessee penalised for mistake of an C.A.
Whether the imposition of penalty by the officer is correct or not.
Whether the assessee had concealed the icnome and liable for penalty.
Whether any fruitful result will be comeout if appeal filed against the order of officer?
adv. rajeev ( rajoo )
(Expert) 06 November 2009
Who has calculated the depreciation. CA goes thru., the trial balnance prepared by you and the individual ledger a/c, he might have taken the calculated depreciation by you, if not it is mitake.
ITO can impose the penalty for concealment of income.
Some times mistakes happens due to oversight or due to wrong calculation. so file an appeal and argue that mistake is not done intentionally, ready to pay the decpreciation calculated.
Before filing the appeal discuss with ur CA, he may suggest you that how the depreciation of 20% was claimed.
adv. rajeev ( rajoo )
(Expert) 06 November 2009
claiming and calculation of wrong depreciation does not mounts to concealment of income
pkpworld..
(Querist) 06 November 2009
The duty and responsibility of an auditor is to check the accuracy and validity of the accounts maintained by the assessee. For this job he is being paid a handsome amount. It ia not expected such a major mistake from a reputed CA for which the innocent assesee bear a heavy loss. So it is a fault committed by him. If an assessee panaliase for any mistake as provided in inocome act, why should a CA not penalise for this great mistake?
In this matter the concerned CA admitted his mistake, told that it was happened due to oversight and silent about the demand, penalty and exhibit escaping attitude.
what to do against the CA?
Raj Kumar Makkad
(Expert) 06 November 2009
CA has definitely committed profession deficiency in service. You can either move a consumer complaint before DCDRF or even can make a detailed complaint with the Institute of Chartered Accountants of India at New Delhi, who can initiate legal action against him.
Kiran Kumar
(Expert) 06 November 2009
as adviced by Mr. Makkad u my approach consumer forum o ICA.
give a detailed complaint, presenting complete deficiency of service on the part of CA.
Vineet
(Expert) 06 November 2009
I agree with Mr Makkad. This is a case of gross professional deficiency. you should lodge a complaint with ICAI.
Applying wrong depreciation rate per se soes not fall under wilful concealment of income or furnishing wrong particulars of income, more so when the case has been audited and certified by a CA. File appeal against penalty order.
adv. rajeev ( rajoo )
(Expert) 06 November 2009
CA has admitted has mistake them file a consumer case against him.
