Find
Penalty depends on the addition. If the appeal deletes the addition, the penalty falls with it. You can ask the officer to keep penalty proceedings in abeyance until the appeal is decided, though this is not automatic.
ITR
Keeping penalty on hold while the appeal runs
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Provisions
Sec 274 (now Sec 471); Sec 246A (now Sec 357); Sec 270A (now Sec 439)
Analysis
Reply to the show cause stating the appeal number and date, and request that proceedings be kept in abeyance. Also give a short reply on merits, so you are covered if the officer proceeds anyway. If a penalty order is passed, appeal it within 30 days as well. If the addition of ₹8,00,000 is later deleted, ask for the penalty to be cancelled.
Close
- Get the appeal acknowledgement number
- Reply to the penalty notice requesting abeyance and giving brief merits
- If penalty is levied, appeal it within 30 days
- Seek cancellation once the addition is deleted
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