Penalty Proceeding, Income Tax

[Awdhesh Kumar Singh]

Hi

Please let me know about this query:

There were three different additions made by AO  in an assessment for AY08-09. The assessee has filed appeal before cit (A) against the above arder but has raised only one point in appeal filed and has not contested on other two points.

Now assessee need to appaer before same AO for penalty initiated by AO in assessment order for AY 08-9. Kindly let me know can penalty be levied when appeal is pending before CIT (A).

 

Thanks

Posts / Replies

[GOPALJI AGRAWAL]

Practically, the AO may be requested to keep the penalty proceedings in abeyance till the order of the appeal. Since AO never asks for copy of appeal filed except the receipt.

Legally, the AO may initiate the penalty proceedings even on the grounds of appeal also. Of course there are many catches to avoid the penalty also.