Template Description

This Grounds of Appeal template pertains to Section 271F of the Income Tax Act, 1961, which deals with the penalty for failure to file an income tax return within the prescribed time. It is a 1-page MS Word document categorized under Appeals and is intended for use by tax consultants, company secretaries, chartered accountants, and businesses challenging a penalty imposed by the Income Tax Department.

Understanding Grounds of Appeal under Section 271F of Income Tax Act, 1961

Terminologies:

• Grounds of Appeal: A formal document submitted to the appellate authorities challenging the decision or order of the lower authority.
• Section 271F: A provision under the Income Tax Act, 1961, which levies a penalty on individuals or entities failing to file their tax returns within the prescribed deadline.
• Assessing Officer: The Income Tax Officer responsible for assessing the tax liabilities of the taxpayer.

Key Components of this Grounds of Appeal:

Structure of Appeal:

• Introduction: The appeal starts by citing the facts of the case, such as the timeline and reason for delay in filing returns, and highlights the legal grounds under which the penalty was imposed.
• Grounds for Challenge: The document outlines the specific grounds on which the taxpayer challenges the penalty, such as:
• Failure to consider extenuating circumstances before levying the penalty.
• Discrepancies or errors in the order issued by the Assessing Officer.
• Legal interpretations of the relevant provisions of Section 271F.
• Relief Sought: The taxpayer requests the appellate authority to quash or reduce the penalty imposed under Section 271F based on the grounds presented.
• Legal Precedents and Case Law: The template may include references to relevant case laws where similar penalties were challenged successfully to strengthen the appeal.
• Taxpayer’s Position: The appeal argues that the taxpayer has always been compliant with tax laws and the delay in filing was due to unavoidable reasons. It requests the authority to waive or reduce the penalty in light of these mitigating factors.
•  Final Submission: The template concludes by requesting the appellate authority to review the case and issue a favourable order, reversing or reducing the penalty imposed under Section 271F.

Procedure for Appeal Filing:

• Draft Grounds of Appeal: Use the provided template to craft the grounds for contesting the addition.
• Submit Appeal to the CIT (Appeals): File the appeal along with any supporting documentation.
• Present the Case: Upon a hearing, present the grounds for challenging the Section 69 addition.

Conclusion

This template provides a standardized format that can be customized according to specific case details. Filing the correct grounds of appeal can help mitigate or nullify penalties, offering companies and professionals a valuable tool in tax dispute resolution.