Income Tax Penalty

Penalties & Prosecutions Under Income tax Act, 1961

Income Tax - Penalties and Prosecutions Default in complying with provisions of or with conditions prescribed under the Income-tax Act would attract certain penalty and in critical cases prosecutions as well. The document will provide you information about the punishable offences, prosecutions and the quantum of penalties that can be imposed under the...

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Updated Penalty Chart under Income Tax Act, 1961

Income Tax - Article discusses Income Tax Penalties for Failure to deduct TDS / TCS in full and part, Quoting false TAN in challan/ statements, Failure to apply for TAN, Failure to furnish e TDS statement / TDS certificate, Failure to comply with department letter...

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Good knowledge of law a must for those in practice

Income Tax - Time For Full/Good Knowledge Of Laws For Tax Practitioners, Chartered Accountants In Order To Save Themselves And Doing Work Of Clients As Per Legal Provisions...

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Myth buster: No Penalty u/s 234F, For Filing of Return after 31st July 2017 but before the end of Assessment Year

Income Tax - Take a deep breath , and understand that the Penalty as proposed in budget speech of Finance Act 2017 is applicable from the date 01st April 2018 , this means , returns for the Financial year 2017-18 will only be attracting this penalty if not filed within due date as stipulated by the law and not ITR of F.Y 2016-17...

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Various Threshold Limits under Income Tax Act [AY 2018-19]

Income Tax - In Respect of exemptions, deduction etc Income Tax imposes various threshold limit. Like in respect of Tax Rates or in respect of deduction under section 80C, 80D, 80U etc. Some of the Popular Limits are Tax Rates , Conveyance Allowance, HRA, Home Loan Interest, Deduction Under Section 80C, Leave Encashment, Gratuity, Medical ...

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Prescribing One Year Time Limit for Disposal of Petitions for Waiver of Penalty/ Interest U/s. 273A, 273AA and 220(2A)

Income Tax - Recommendations For Prescribing Time Limit Of One Year For Disposal Of Petitions For Waiver Of Penalty And Interest Under Sections 273A, 273AA and 220(2A) Whereas, a time limit of 1 year for disposal of a tax payer’s Revision Petition u/s. 264 has been prescribed, there is no such time limit for disposal of Petitions for […]...

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Penalty waived for non-attendance by earlier Counsel without intimating assesse

Inderjeet Singh Damania Vs ACIT (ITAT Delhi) - it has been submitted that assessment proceedings before the AO were earlier being taken care of by the tax counsel, who, however, stopped attending the proceedings without intimating the assessee as differences had developed between the assessee and the counsel. ...

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Additional Income cannot be treated as undisclosed merely for admission during search

Deputy Commissioner of Income-tax Vs. Shri Ravi Kumar Khaitan (ITAT Kolkata) - Merely for the reason that the assessee had admitted additional income in the course of search for taxation, it cannot be said that such admitted income was undisclosed income within the meaning of 'undisclosed income' provided in Explanation to section 271AAA of the Act to impose the penalty. ...

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Penalty U/s. 221(1) for default in payment of demand cannot exceed tax amount

CIT Vs. Oryx Finance and Investment (P) Ltd. (Bombay High Court) - On reading the provisions of section 221 conjointly with the definition of “tax” as detailed under section 2(43), the irresistible conclusion that can be drawn is that the phraseology tax in arrears as envisaged in section 221 of the Act would not take within its realm the interest component. ...

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No Penalty for claim which was allowed at one Stage and disallowed later on

DCIT Vs American Express India Pvt. Ltd. (ITAT Delhi) - If a claim made by the assessee has been allowed at one stage and later on has been disallowed, ostensibly, the assessee can said to have some bona fide belief for making such a claim. ...

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Penalty U/s. 271AAA not leviable on Failure to ask question regarding manner of earning of income

ACIT Vs Shreenarayan Sitaram Mundra (ITAT Ahmedabad) - The present appeal by the Revenue is directed against the order of the Commissioner (Appeals)-II, Ahmedabad [CIT(A) in short] dated 30-9-2013 for the assessment year (AY) 2010-11 wherein penalty imposed under section 271AAA of the Income Tax Act, 1961 (hereinafter referred to as the Act) Rs. 20 lakh...

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Limitation for penalty proceedings U/s. 271D & 271E

Circular No. 10/2016-Income Tax - (26/04/2016) - It is a settled position that period of limitation of penalty proceedings under section 271D and 271E of the Act is governed by the provisions of section 275(1)(c) of the Act. Therefore, the limitation period for the imposition of penalty under these provisions would be the expiry of the financial y...

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Limitation commencement for penalty proceedings U/s. 271D &271E

Circular No. 09/DV/2016 (Departmental View) - (26/04/2016) - It has been brought to notice of CBDT that there are conflicting interpretations of various High Courts on the issue whether the limitation for imposition of penalty under sections 271D and 271E of the Income tax Act, 1961commences at the level of the Assessing Officer (below the rank of Joint Commi...

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Recent Posts in "Income Tax Penalty"

Penalty waived for non-attendance by earlier Counsel without intimating assesse

Inderjeet Singh Damania Vs ACIT (ITAT Delhi)

it has been submitted that assessment proceedings before the AO were earlier being taken care of by the tax counsel, who, however, stopped attending the proceedings without intimating the assessee as differences had developed between the assessee and the counsel. ...

Read More

Additional Income cannot be treated as undisclosed merely for admission during search

Deputy Commissioner of Income-tax Vs. Shri Ravi Kumar Khaitan (ITAT Kolkata)

Merely for the reason that the assessee had admitted additional income in the course of search for taxation, it cannot be said that such admitted income was undisclosed income within the meaning of 'undisclosed income' provided in Explanation to section 271AAA of the Act to impose the penalty. ...

Read More

Penalty U/s. 221(1) for default in payment of demand cannot exceed tax amount

CIT Vs. Oryx Finance and Investment (P) Ltd. (Bombay High Court)

On reading the provisions of section 221 conjointly with the definition of “tax” as detailed under section 2(43), the irresistible conclusion that can be drawn is that the phraseology tax in arrears as envisaged in section 221 of the Act would not take within its realm the interest component. ...

Read More

No Penalty for claim which was allowed at one Stage and disallowed later on

DCIT Vs American Express India Pvt. Ltd. (ITAT Delhi)

If a claim made by the assessee has been allowed at one stage and later on has been disallowed, ostensibly, the assessee can said to have some bona fide belief for making such a claim. ...

Read More

Penalty U/s. 271AAA not leviable on Failure to ask question regarding manner of earning of income

ACIT Vs Shreenarayan Sitaram Mundra (ITAT Ahmedabad)

The present appeal by the Revenue is directed against the order of the Commissioner (Appeals)-II, Ahmedabad [CIT(A) in short] dated 30-9-2013 for the assessment year (AY) 2010-11 wherein penalty imposed under section 271AAA of the Income Tax Act, 1961 (hereinafter referred to as the Act) Rs. 20 lakhs was deleted by the Commissioner (Appea...

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Penalty U/s. 271AAA not applicable on failure to ask question regarding manner of earning of income

Pr. CIT Vs Mukeshbhai Ramanlal Prajapati (Gujrat High Court)

Section 271AAA imposes an additional condition of the assessee having to substantiate the manner in which, the undisclosed income was derived. This requirement, however, must be seen as consequential to or corollary to the base requirement of specifying the manner, in which, the undisclosed income was derived. It is only when such declara...

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Penalties & Prosecutions Under Income tax Act, 1961

Penalties and Prosecutions Default in complying with provisions of or with conditions prescribed under the Income-tax Act would attract certain penalty and in critical cases prosecutions as well. The document will provide you information about the punishable offences, prosecutions and the quantum of penalties that can be imposed under the...

Read More
Posted Under: Income Tax |

Updated Penalty Chart under Income Tax Act, 1961

Article discusses Income Tax Penalties for Failure to deduct TDS / TCS in full and part, Quoting false TAN in challan/ statements, Failure to apply for TAN, Failure to furnish e TDS statement / TDS certificate, Failure to comply with department letter...

Read More
Posted Under: Income Tax | ,

Penalty cannot be levied on a basis other than what it was in Quantum Appeal

Indermal Manaji Vs. The Commissioner of Income Tax (Bombay High Court)

S. 271(1)(c): If the basis on which penalty is initiated by the AO and the basis on which the quantum is confirmed on merits by the Tribunal are different, penalty cannot be levied ...

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Good knowledge of law a must for those in practice

Time For Full/Good Knowledge Of Laws For Tax Practitioners, Chartered Accountants In Order To Save Themselves And Doing Work Of Clients As Per Legal Provisions...

Read More
Posted Under: Income Tax |
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