402 October 20 To October 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 43 u^44
case, the property, viz., vacant site was sold
after 15.06.2018. The tax liability in respect
of capital gains must be discharged to the
extent of 45% before 15.09.2018, not less than
75% before 15.09.2018 and the balance of tax
liability before 15th of March, 2019. In other
words, your client can pay advance tax on
staggered basis in the remaining instalments
after the sale of capital asset.
Waiver of penalty under section 271D for
the second time
Our firm’s scrutiny assessment under section
143(3) got completed with an addition.
Show cause notice for levy of penalty
under section 271D for contravention of
the provisions of section 269SS is issued.
The penalty would be ` 4 lakhs, being
the amount equal to the amount of loan
accepted otherwise than by account-payee
crossed cheque or bank draft. The penalty
was levied by the Joint Commissioner
in October, 2018. We wish to seek the
waiver of penalty by approaching the
Commissioner of Income-tax who has the
power to waive off penalty by virtue of
section 273A. But our tax counsel says
that such waiver was obtained once in
the assessment year 2013-14 and, therefore,
the benefit of waiver cannot be availedfor the second time. Is it the correct
position of law?S
ection 273A empowers the Principal
Commissioner or Commissioner to reduce
or waive off penalty imposable under section
270A where the assessee before detection of
concealment of income has furnished details
of income voluntarily and in good faith
besides co-operating in the assessment and
paid tax demand arising on completion of
assessment. Section 273B similarly provides
for relief from levy of penalty under various
sections except section 270A.
In your case, waiver of penalty is sought
to be obtained by referring to section 273A
which is incorrect. This section is meant for
concealment penalty and does not apply to
penalty imposable for contravention of sec-
tions 269SS and/or 269T.
When the penalty has been imposed under
section 271D for contravention of section
269SS, you cannot seek relief under section
273B which provides for relief from of penalty
before being imposed. Hence, after levy, it
is of no avail. The only recourse available
to you is to file an appeal before the first
appellate authority and explain the reasonable
cause for contravention of section 269SS and
seek waiver.
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