From,

…………………………………..

…………………………………..

Dated ………………………….

To,

The Joint Commissioner of Income Tax,

Range ……………………………

Dear Sir/Madam,

Subject : Reply of Your Notice u/s 271C for Penalty Proceeding.

PAN No ……………….

My client …………………… has received your Notice dated…………………… u/s 271C of the Income Tax Act, 1961 for assessment year ……………

I have been instructed by my said client to submit that :

(a) That my client has deducted tax at source as required in accordance with the provisions of Chapter XVII-B of the Income Tax Act. However in case of interest on loan paid to two parties, i.e., …………. and ……….., tax was not deducted at source as these parties had submitted Form No.15-H. A copy of the same was duly filed by our/my client with the office of the CIT……………………. on……………………. (xerox of receipted copy enclosed along with copy of Form 15-H) . Thus there was no failure, as alleged, on the part of my client. Therefore you are requested to drop the penalty proceedings.

(b) That my client could not make the full payment of tax payable under section 115-0(2) in time and 4 days delay was caused as my Client’s business operations came to a stand still because of massive impact of the Flood in ………… where my client’s office premises is located. It is a known fact as to how the life was disrupted as a result of the said Flood. However as soon as some normally returned my client deposited the amount of tax on ………………………….

A copy of the paid challan is enclosed for your kind perusal. Thus the delay was caused due to Flood and it was beyond the control of my client.

(c) you will appreciate that the 4 days delay caused by the said Flood is a reasonable cause and it is prayed that the proceedings under section 271C may please be dropped in the light of the provisions of section 271B.

For this act of kindness, my client shall remain grateful.

For more assistance, please visit www.companymitra.com

Thanking you

Yours faithfully

…………………………