Template Description

This template provides a comprehensive framework for drafting grounds of appeal under Section 271(1)(b) of the Income Tax Act, 1961. The document is a 1-page MS Word document that helps taxpayers contest penalties levied by the Assessing Officer for non-compliance with specific legal requirements, such as failure to furnish information or documents during proceedings. It is designed for use by legal professionals, tax consultants, corporate taxpayers, and individual taxpayers.

Understanding Grounds of Appeal under Section 271(1)(b) of Income Tax Act, 1961

Terminologies:

• Grounds of Appeal – This term refers to the reasons or basis upon which an appeal is filed by the taxpayer disputing the penalty imposed by the tax authority.
• Section 271(1)(b) – This section of the Income Tax Act, 1961, deals with penalties levied for failure to comply with notices issued under the Act, including notices for filing returns, attending assessments, or providing required documentation.

Common Grounds for Appeal:

• Unjust Penalty: The Assessing Officer may have levied a penalty despite the taxpayer’s legitimate attempts to comply with the requests for information, leading to the grounds that the penalty is unjustified.
• Technical Glitch or Procedural Delay: Instances where taxpayers argue that delays or non-compliance occurred due to unforeseen circumstances, such as technical issues or minor procedural delays.
• Reasonable Cause for Non-Compliance: The appeal may include arguments that the taxpayer had a reasonable cause for the delay or non-compliance, such as health issues, business disruptions, or other unavoidable reasons.

Key Considerations for Filing the Appeal:

• Accurate Representation: The appellant must clearly represent the facts of the case and the reason for non-compliance, ensuring no false or misleading information is included.
• Documentation: Supporting documents, such as medical certificates, notices from government authorities, or evidence of technical glitches, should accompany the appeal to strengthen the case.
• Appeal Process: Ensure that the appeal is filed within the prescribed time limit as outlined by the Income Tax Act to avoid dismissal due to procedural non-compliance.

Conclusion

This template simplifies the process of drafting a strong and legally compliant appeal against penalties imposed under Section 271(1)(b) of the Income Tax Act, 1961. It ensures that taxpayers and their legal representatives can effectively contest penalties by presenting valid grounds supported by evidence. Proper documentation and adherence to legal protocols are critical for a successful appeal outcome.