Rationalisation of Penalties into Fee

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....espect of any previous year or years relevant to an assessment year or to obtain a report of such audit as required under the aforesaid provision, the Assessing officer may direct that such person shall pay, by way of penalty, lesser of - i. 0.5% of the total sales, turnover or gross receipts, in the business, or the gross receipts in the profession, for such tax year or years, or ii. Rs. 1500....

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.... the failure continues. 4. In this regard, it is considered that penalties for technical delays should be converted into mandatory fee as fee reduces litigation for technical faults. 5. In view of the above it is proposed to convert following penalties into fee: I. Penalty under section 446 for failure to get accounts audited is converted to a fee under proposed section of 428(c). Accordingly,....