I had received a demand and I have paid the same with interest already. Later, I have been charged a penalty u/s 271(1) of Rs.4,05,000/-, I made an appeal to CIT appeals and they had rejected the same. Now, I have filed the Appeal in ITAT. The tax officer has issued an order to pay the outstanding immediately. Now, is it normal for the IT officer to wait till the ITAT appeal is over to collect the demand or they start recovery proceedings ? 2. Will interest be charged incase ITAT appeal has been rejected ?
Hi
1. IT officers generally start recovery proceedings. You have to apply for stay application before AO and if he rejects it then you have to apply before CIT(A)/ ITAT.
2. Yes, interest will be charged.
Please feel free to call/ revert in case you need more clarity
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
Ideally the AO has to wait till the appeal has been disposed off by the ITAT. You have to file a letter intimating him about the appeal pending before the ITAT along with proof of filing of appeal.
If you lose the case before the ITAT, interest will be charged.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Hello,
1. You have to file a letter with the AO requesting him to keep the recovery proceedings in abeyance. If this letter is not filed, then the AO can recover the outstanding demand.
2. If the ITAT dismisses your appeal, then interest will be levied.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
