In our case under sec 148 Income tax Act,AO has sent by post both Assessment order as well as penalty showcause u/s 271,274 ITAct to us.Now the penalty showcause shows a forthcoming date as opportunity of hearing against penalty levied.How can the assessment order be final then?
Has the AO erred by not giving penalty showcause and hearing before making final assessment order?
Penalty proceedings are initiated only at the time of the finalization of the assessment. How can the AO decide whether you have furnished inaccurate particulars of income or concealed you true income without finalizing the assessment?
Sec. 148 deals with reassessment. The AO has reassessed you case and passed an order. Following that he has initiated penalty proceedgins and given you an opportunity of being heard.
The AO has taken proper steps according to me in the case mentioned my you.