FOR ONE OF OUR
CLIENT INCOME TAX OFFICER HAS LEVIED PENALTY U/S. 271(1)(b) AT RS. 50,000 FOR
NOT ATTAINED IN RESPONSE TO NOTICE U/S. 142(1) FOR 5 TIMES. FOR ONE NOTICE U/S.
142(1) THE AMOUNT WAS RS. 10,000 AND THE ITO IS SAYING THEY HAVE ISSUED NOTICE
U/S. 142(1) 5 TIMES SO THE PENALTY AMOUNT LEVIED WILL BE 10,000 x 5 = 50,000.
THEY HAVE PASSED THE ORDER U/S. 144. IS THERE ANY JUDGEMENT OR SOLUTIONS IN
THIS ABOVE MATTER OR ANY GUIDELINES WHAT CAN BE DONE IN THIS MATTER? BECAUSE
NOBODY CAN CHARGE 50,000 AS PENALTY BECAUSE THEY HAVE ISSUED NOTICE 5 TIMES.
WAITING FOR YOUR PROMPT REPLY.
As per section 271(1)(b) of Income tax Act, 1961, a person
shall be liable to pay penalty in addition to tax, if any, payable by him, a
sum of ten thousand rupees for each such failure where such person has failed to comply with a notice
under section 142(1).
The penalty under the aforesaid section is for each failure
not only one time, accordingly your client has to pay penalty of Rs. 50,000.