276B PROSECUTION, Income Tax

[VENKATESWARA RAO RAVURI]

SIR, WE HAVE DEDUCTED TDS AND PAID WITH INTEREST AT THE TIME OF FILING OF RETURNS FOR THE AY 12-13. NOW THE COMMISSIONER ISSUED SHOWCASE NOTICE FOR PROSECUTION OR PAYING PENALTY OF 5% PER MONTH. IF WE ARE NOT PAYING PENALTY AND IF HE PROSECUTES US, CAN WE WIN THIS CASE. PLEASE ADVISE US.

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[CA GOPALJI AGRAWAL]

There is a CBDT instruction that prosecution should not normally be proposed when amount involved and the period of default is not substantial (Instruction dated 28/05/1980. You may seek the relief under this circular otherwise the precedences are against you as per apex court also.

290 ITR 199 (SC)