Template Description

This template is a formal letter used to request that penalty proceedings under Section 270A of the Income Tax Act, 1961 be suspended while an appeal is pending before the Commissioner of Income Tax (Appeals) [CIT(A)]. This template is 2-page Ms Word document. The letter is mandatory for addressing to the Income Tax Officer (ITO) at the National Faceless Assessment Centre. Intended users are tax professionals, legal representatives, or authorized persons.

Understanding Abeyance Letter - Penalty proceedings under Section 270A of I.T. Act:

Purpose:

The primary purpose of this letter is to formally request the Income Tax Officer to keep the penalty proceedings in abeyance until the appeal filed by the assessee is decided by the CIT(A). This is typically done when an assessee is contesting the assessment order and believes that the penalty proceedings should be put on hold until the appeal is resolved.

Key Components:

Date and Recipient Details:

The letter should include the date and be addressed to the Income Tax Officer at the National Faceless Assessment Centre, Delhi, including relevant reference details such as the PAN of the assessee and the DIN from the show cause notice.

Reference to Show Cause Notice:

The letter should refer to the specific show cause notice received under Section 274 read with Section 270A, mentioning the date of the notice.

Appeal Details:

A statement should be included indicating that an appeal has been filed against the assessment order with the CIT(A). This section should request that the penalty proceedings be held in abeyance pending the outcome of the appeal.

Enclosures:

Proof of the appeal filed with the CIT(A) should be attached to the letter. This serves as evidence that the appeal process is underway and supports the request to delay the penalty proceedings.

Closing and Sign-off:

The letter should be signed by an authorized representative from the firm or the assessee, with their designation clearly mentioned.

Conclusion

This template provides a standardized approach for requesting the suspension of penalty proceedings while an appeal is pending before the CIT(A). It ensures that the communication with the tax authorities is clear, formal, and compliant with legal requirements, thereby aiding in the efficient management of tax disputes and proceedings.