Anil Agrawal (Retired) 20 August 2010
It was found after investigation of tax evasion petition that the assessee and concealed income and evaded taxes. Demand notice for Rs.6.10 was issued. The Assessee was asked why penalty proceedings under Sec.271(1)(c) should not be started against him and he was asked to attend the hearing on a particular date. Neither he attended the hearing nor any order was passed. Is it the discretion of the ITO?
Why penalty and prosecution cannot be started?
Shayan Khan (B.com) 21 August 2010
As soon as the show cause notice for the concealment of income u/s 271(1)(c) is issued, the proceeding is started. the assessee is asked to attend the office of the ITO to show the sufficient cause why they shall not impose penalty?. if the assessee doest not provide the sufficient cause or fails to respond the notice issued then the A.O. may impose the penalty ranging from 100% to 300% of the amount of tax evaded depending upon the seriousness of the case.
Thank you!
Anil Agrawal (Retired) 22 August 2010
May? Is it discretionary? What about prosecution? I am told it is mandatory and ITO has no option but to impose penalty and also prosecute the offender. How can he not pass any order when the assessee does not attend the hearing?
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