Income Tax Penalty

Income Tax Grievance Redressal Mechanism – Section 276B

Income Tax - Grievance Redressal Mechanism under Chapter XII-D or XVII-B section 276B of Income Tax Act 1961 Failure to pay tax to the credit of Central Government is an offence under chapter XII-D or XVII-B section 276B of Income Tax Act, 1961. It is a serious offence in India and can subject a taxpayer to prosecution. The […]...

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Penalty for furnishing inaccurate SFT or reportable account – Budget 2023

Income Tax - Penalty for furnishing inaccurate statement of financial transaction (SFT) or reportable account – Budget 2023 Section 285BA of the Act makes it mandatory for a person responsible for registering, or, maintaining books of account or other document containing a record of any specified financial transaction or any reportable account a...

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Interest & Penalty Provisions Under Income Tax Act, 1961

Income Tax - Interest and penalty provisions apply to the assessee when he contravenes the provisions of the Income Tax Act. Some of them are mandatory while others are at the discretion of the tax authorities....

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Section 270AA- An option to avoid penalty implications in case of under-reporting and mis-reporting of income

Income Tax - Insertion of section 270AA is welcoming initiative taken by the revenue to reduce the litigation, collect the demand at the earliest and immunise the assessee from imposition of penalty. This initiative is equally in interest of assessee as well as revenue. Section 270AA states as under: “270AA. Immunity from imposition of penalty,...

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Various Threshold Limits under Income Tax Act

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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Late Fees, Interest, threat to levy penalty or to initiate prosecution – Tax Terrorism

Income Tax - People are held hostage in a cyber-world with ransom in the form of Late Fees and Interest and a threat to levy penalty or to initiate prosecution. No other words better describe the situation than the term Tax Terrorism....

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Indiscriminate Income Tax notices without allowing reasonable time

Income Tax - In view of Indiscriminate notices by income Tax Department without allowing reasonable time it is requested to Finance Ministry and CBDT that suitable steps should be taken so that adequate time is allowed for compliance and cases are not disposed of in a hurry, without giving adequate opportunity for the taxpayer to be heard. The [&helli...

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Extend Time Limit for Income Tax Assessment time barring on 31.3.2022

Income Tax - Lucknow CA Tax Practicioners Association has made a Representation to FM for Extension of Time Limit for Assessment cases time barring as on 31.3.22 under the Income Tax Act 1961 in view of Problems faced in completion of Reopened Assessment cases (letting time barred on 31st March 2022, Problems faced in completion of Assessment as [&hel...

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Request for Rationalisation of Section 270AA Penalty Provisions

Income Tax - A reasonable leniency may be exercised by the AOs to allow the Taxpayer’s who have paid the tax and interest beyond the time limit specified in the demand notice issued u/s 156 to accept the application and grant immunity u/s 270AA....

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Section 234F Fee for delayed filing of return causing undue hardship

Income Tax - The Finance Bill, 2017 proposes to levy fees of Rs.5,000 in case where return is furnished after the due date but on or before 31St December of the relevant assessment year and Rs.10,000, in other cases. However, it is also proposed to restrict the fees to Rs.1,000, where the total income does not exceed five lakh rupees....

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Penalty u/s 271(1)(c) not leviable as disallowance of expense doesn’t mean incorrect furnishing of income

Kekri Cooperative Marketing Society Vs ITO (ITAT Jaipur) - ITAT Jaipur held that disallowance of expenses per se cannot mean that the assessee has furnished incorrect particulars of income. Accordingly, penalty under section 271(1)(c) of the Income Tax Act not leviable....

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Penalty cannot be cancelled for mere non-specification of limb under which penalty u/s 271(1)(c) is levied

Moola Padmaja Vs ACIT (ITAT Hyderabad) - ITAT Hyderabad held that penalty under section 271(1)(c) of Income tax Act cannot be cancelled merely because of non-specification of limb i.e., for concealment of income or furnishing inaccurate particular of income under which penalty is levied....

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Delay in Tax Audit Report Submission is Technical Breach: ITAT deletes section 271B Penalty

Sebastian Joseph Vs ACIT (ITAT Pune) - The issue in the present appeal relates to the exigibility of penalty u/s 271B for failure of the assessee to get accounts audited in respect of the previous year relevant to the assessment year under consideration as required u/s 44AB and furnished to the Assessing Officer before specified due date...

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Bogus Purchase: No Penalty if Addition was on Estimated Basis

V. K. Ispat & Alloys Vs ITO (ITAT Mumbai) - ITAT held that penalty u/s. 271(1)(c) on Bogus purchase addition cannot be levied where addition was made on estimated basis....

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Penalty u/s 271(1)(c) of Income Tax Act not leviable for mere rejection of claim

Balkrishna Purshottamdas Patel Vs JCIT (ITAT Ahmedabad) - ITAT Ahmedabad held that as all the particulars duly furnished by the assessee relating to source of investment, mere rejection of the claim of the assessee cannot invite levy of penalty under section 271(1)(c) of the Income Tax Act. Accordingly, penalty deleted....

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Scope of Penalties to be assigned to Faceless Penalty Scheme, 2021

F No. 187/4/2021-ITA-I - (26/02/2021) - Order under Para 3 of the Faceless Penalty Scheme, 2021, for defining the scope of ‘Penalties’ to be assigned to the Faceless Penalty Scheme, 2021 – regarding F No. 187/4/2021-ITA-I Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) ***** ...

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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 u/s 271(1)(c) not leviable as disallowance of expense doesn’t mean incorrect furnishing of income

Kekri Cooperative Marketing Society Vs ITO (ITAT Jaipur)

ITAT Jaipur held that disallowance of expenses per se cannot mean that the assessee has furnished incorrect particulars of income. Accordingly, penalty under section 271(1)(c) of the Income Tax Act not leviable....

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Penalty cannot be cancelled for mere non-specification of limb under which penalty u/s 271(1)(c) is levied

Moola Padmaja Vs ACIT (ITAT Hyderabad)

ITAT Hyderabad held that penalty under section 271(1)(c) of Income tax Act cannot be cancelled merely because of non-specification of limb i.e., for concealment of income or furnishing inaccurate particular of income under which penalty is levied....

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Delay in Tax Audit Report Submission is Technical Breach: ITAT deletes section 271B Penalty

Sebastian Joseph Vs ACIT (ITAT Pune)

The issue in the present appeal relates to the exigibility of penalty u/s 271B for failure of the assessee to get accounts audited in respect of the previous year relevant to the assessment year under consideration as required u/s 44AB and furnished to the Assessing Officer before specified due date i.e. due date for filing the return of ...

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Bogus Purchase: No Penalty if Addition was on Estimated Basis

V. K. Ispat & Alloys Vs ITO (ITAT Mumbai)

ITAT held that penalty u/s. 271(1)(c) on Bogus purchase addition cannot be levied where addition was made on estimated basis....

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Penalty u/s 271(1)(c) of Income Tax Act not leviable for mere rejection of claim

Balkrishna Purshottamdas Patel Vs JCIT (ITAT Ahmedabad)

ITAT Ahmedabad held that as all the particulars duly furnished by the assessee relating to source of investment, mere rejection of the claim of the assessee cannot invite levy of penalty under section 271(1)(c) of the Income Tax Act. Accordingly, penalty deleted....

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Income Tax: Section 271E Penalty cannot be Imposed Mechanically

Devinder Gupta & Sons (HUF) Vs CIT (ITAT Delhi)

Devinder Gupta & Sons (HUF) Vs CIT (ITAT Delhi) It is an admitted position that the assessee had taken loan from the lender in the earlier years, a part of which has been repaid during the year albeit in cash. The amount of loan has been consequently reduced. A confirmation whereof from the lender has […]...

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When search is initiated, penalty is leviable u/s 271AAB and not under 271(1)(c)

PCIT Vs Jai Maa Jagdamba (Jharkhand High Court)

Jharkhand High Court held that when search is initiated, penalty is leviable under section 271AAB of the Income Tax Act. Accordingly, initiation of penalty proceedings u/s 271(1)(c) post initiation of search is unsustainable....

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Income Tax Grievance Redressal Mechanism – Section 276B

Grievance Redressal Mechanism under Chapter XII-D or XVII-B section 276B of Income Tax Act 1961 Failure to pay tax to the credit of Central Government is an offence under chapter XII-D or XVII-B section 276B of Income Tax Act, 1961. It is a serious offence in India and can subject a taxpayer to prosecution. The […]...

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Penalty u/s 271(1)(c) not imposable for application of section 50C of Income Tax Act

Shailendra Vs ITO (ITAT Delhi)

ITAT Delhi held that penalty under section 271(1)(c) of the Income Tax Act cannot be imposed on the basis of legal fiction of section 50C of the Income Tax Act....

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Penalty u/s 271(1)(c) not leviable for bona fide wrong claiming of depreciation

Headmaster Saloon Pvt. Ltd. Vs DCIT (ITAT Chandigarh)

ITAT Chandigarh held that claiming of wrong depreciation on the advice of auditor is bona fide claim and hence penalty under section 271(1)(c) of the Income Tax Act not leviable....

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