Latest Query & Reply

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.

Reply:

Dear Sir,

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.