I have been issued notice for above act as aseem ent was made under section 143 (3). And demand was made for 98000 I have paid the demand now I have served new notice of 271(c) how shall I reply
Assessment was done as I have one vaccent property and AO told me that I have hide the rental income of property which I have told him that property was vaccent and I have not given on rent but he told me that I have to pay tax on vaccent propert annual rentable amount for which he impose tax 98000 which I have paid now new notice how can I save on this penslity notice
Sir if you need I can help you in drafting the reply of such notice but for that I need to first read the assessment order.
You need to reply the notice from e assessment tab in your profile.
If you need any help you can contact me.
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Thank you
Hi,
Your case fits into the under reporting/ misreporting of income.
I suppose, you must have received a show cause notice from AO as to why penalty should not be levied.
You can file a detailed reply to AO mentioning following two things in details:
1. 271(1)(c) is applicable only if there is an element of mens rea (deliberate act of concealment of income). Whereas in your case, it seems to be missing.
2. Various case laws supporting above contentions and shelter of section 273B.
We can assist you in drafting a detailed submission on this matter.
Hi,
Section 271(1)(c) deals with the penalty for the concealment of the income. Please share copy of notice.
Thanks
Hi,
Please share the copy of notice for appropriate reply.
Hello,
Notice under Section 271(1)(c) is issued for intiating penalty.
If you can share the copy of the notice, it must clearly specify the reasons for levying the penalty.
Regards,
CA Hunny Badlani
Under the Income Tax Act, 1961, a person's gross income is calculated on the basis of 'salary income', 'income from house property', 'business income', 'capital gain', and 'income from other sources'.
"Under the head 'income from house property', tax is levied not on the rent but on the potential of the premises to yield income for the owner. Here taxation is on a notional basis, which is based on the annual value of the property-the sum the property could have generated if it was let out in a year,"
So, you need to pay the taxes with penalty on said amount.