What is the Difference between Penalty, Offence and Prosecution?
Discussion
Dear All, One of my clients received a Show cause notice from AO u/s 270A for under-reporting of income on account of certain expenditures disallowed by AO. Please kindly provide me a suitable reply for this Penalty notice. It's urgent.
Penalty are the financial burden imposed by the Competent Authority in order to penalise the assessee so that the asseessee will restrain from breach of law.
Offence is generally termed as the breach of law. It is the broader term which includes the Penalty, Interest & Prosecution.
Prosecution is the physical punishment being ordered for committing restricting offences and is generally referred to Imprisonment. It can be imposed standalone and along with penalty & Interest.