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Appealing for waiver of interest on tax and penalties at Apellate trib
14-Aug-2023 (In Tax Law)
Hi, my dad was an NRI and came back to India after retirement in 2001. He hasn't earned any money in India before or after 2001. In 2008, his sister gave him money in cash as per his share in sale of old ancestral property sold in 2001. In 2016, the IT dept asked them to file taxes for 2008 year in which he declared the inheritance. This was however treated as concealment and tax plus interest for 8 years period (2008 to 2016) and extra penalties for failing to meet the Assessing officer were levied on them...the total amount is 4 times the tax. (my parents are senior citizens and were not in good health and missed only one meeting) On appealing to the CIT (A) stating that we were incorrectly accused of concealment, the appeals officer rejected it saying only Affidavit of dads sister stating she deposited the money in my dad's account was not enough and a sale deed was needed which was lost..is it possible to ask for waiving Interest and Penalties at Tribunal level.
Interest is a libility which is automatic. Meaning thereby if there is a liability to pay tax there will be a liability to pay it with interest.
However, from your it appears that the income even though earned in 2008 is made subject to tax from 2001 and if that the case be then the liability needs to be challenged to that extent.
Moreover, penalty under income tax is mainly imposed either when there is concealment or if there is non-complince. In these circumstances penalty is not automatic and can be challenged before the Tribunal, in your case, if sufficient reason is shown. It depends on few factors though, under which section Assessment Order is passed and penalty is imposed under which Section?
However, from your it appears that the income even though earned in 2008 is made subject to tax from 2001 and if that the case be then the liability needs to be challenged to that extent.
Moreover, penalty under income tax is mainly imposed either when there is concealment or if there is non-complince. In these circumstances penalty is not automatic and can be challenged before the Tribunal, in your case, if sufficient reason is shown. It depends on few factors though, under which section Assessment Order is passed and penalty is imposed under which Section?
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Adv. Deepak Thackur
Delhi | 25+ Answers
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Hi, so far i understand your query that Assessing officer has created demand under section 143(3) of Income Tax Act, and might have initiated penalty proceeding and subsequently have confirmed too. you can file appeal against the impugned order passed by assessing officer to CIT (Appeal) . i am tax practicing and if you wanted to avail my service you may contact me with copy of impugned order. my contact number is nine eight triple five zero one zero one zero.
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Adv. Manoj Kumar
Delhi | 25+ Answers
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Dear Querist,
As stated that the CIT(A) has confirmed the addition made by Assessing Officer. Now you are moving to Tribunal. But we have to obtain necessary documents as required by the CIT(A) in his query.
We have a chance to win at Tribunal level.
I need more details to give detailed reply.
As stated that the CIT(A) has confirmed the addition made by Assessing Officer. Now you are moving to Tribunal. But we have to obtain necessary documents as required by the CIT(A) in his query.
We have a chance to win at Tribunal level.
I need more details to give detailed reply.
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Adv. Sushil Kumar
Delhi | 25+ Answers
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Dear Madam/Sir
This response is being submitted on the limited facts submitted and the answer is therefore subject to perusal of the complete papers. I am assuming that NO appeal has been filed before the ITAT as yet.
Please note that the Income Tax Appellate Tribunal is the final fact finding authority and therefore, an appeal on merits contesting the CIT(A)'s order, would contain a challenge to the penalty and interest levied under Section 271 of the IT Act. ITAT has the power to alter the said penalty/ interest. Therefore, it would be advisable for you to challenge the order of the CIT(A) on merits and additionally seek waiver of interest/ penalty.
Hope this is helpful.
This response is being submitted on the limited facts submitted and the answer is therefore subject to perusal of the complete papers. I am assuming that NO appeal has been filed before the ITAT as yet.
Please note that the Income Tax Appellate Tribunal is the final fact finding authority and therefore, an appeal on merits contesting the CIT(A)'s order, would contain a challenge to the penalty and interest levied under Section 271 of the IT Act. ITAT has the power to alter the said penalty/ interest. Therefore, it would be advisable for you to challenge the order of the CIT(A) on merits and additionally seek waiver of interest/ penalty.
Hope this is helpful.
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Adv. Suriti Chowdhary
Delhi | 25+ Answers
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