Section 271AAB

Penalties under Income-Tax Act, 1961

Income Tax - Under the Income-tax Act, penalties are levied for various defaults committed by the taxpayer. Some of the penalties are mandatory and a few are at the discretion of the tax authorities. In this part, you can gain knowledge about the provisions relating to various penalties leviable under the Income-tax Act....

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Penalties and 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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Penalties imposable in Income Tax Search Cases

Income Tax - 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. There are three modes built in the fiscal legislation for encouraging tax compliance: (a) Charge of Interest; (b) Imposition of penalty; (c) launching of prosecution agai...

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Section 271AAB Penalty on undisclosed income where search has been initiated  

Income Tax - Section 271AAB of the Income Tax Act, 1961 deals with the penalty provisions. As per the said section, the penalty is payable on undisclosed income found during the search proceedings initiated under section 132 of the Income Tax Act. Section 271AAB contains two sub-section (1) and (1A). The applicability of both the sub-sections are expl...

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Section 271AAB – Relax restrictions to claim benefit of concessional rate of penalty @ 10%: ICAI

Income Tax - Section 271AAB provides for imposition of penalty at specified rates where search has been initiated. The rate of penalty varies from 10% to 60 % depending on the time when the assessee admits the undisclosed income....

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Section 271AAB Prosecution should not be initiated for Income disclosed during survey: ICAI

Income Tax - Section 271AAB provides for imposition of penalty @ 10% on undisclosed income found during the course of search and admitted at the stage of search. Undisclosed income not admitted at the stage of search but  disclosed in the return of income filed after the search to attract penalty @ 20%. ...

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Section 153A / 271AAB– Need for effective deterrence and finality in Search Cases

Income Tax - Present scheme of administration of Search and Assessment of search cases needs to be made effective to reduce technical complexities ...

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No Section 271AAB penalty In absence of mechanism to report investment in tax return

Gauri Shankar Kandoi Vs DCIT (ITAT Jaipur) - Where assessee was not required to maintain any books of account and there was no mechanism to report the investment in the tax return, the said investment could not be held as undisclosed investment and more so, undisclosed income so defined in section 271AAB, therefore, investment so found in purc...

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Section 271AAB penalty cannot be levied based on defective notice

Ashok Bhatia Vs DCIT (ITAT Indore) - Penalty under section 271AAB levied on the basis of defective notice could not be sustained as  there was no mention about various conditions provided u/s 271 AAB as it was incumbent upon AO to mention in notice issued under section 274 read with section 271AAB as to under which clause of section 2...

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Section 271AAB Penalty justified if surrendered stock was unaccounted

M/s Royal Lifestyle Jewellers Pvt. Ltd Vs DCIT (ITAT Chandigarh) - Penalty under section 271AAB was justified as the surrender had been made on account of discrepancy /shortage in stock which had not been accounted for by assessee and the same was therefore rightly been held to qualify as “ undisclosed income” as per the definition in section 271AAB....

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Penalty U/s. 271AAB justified on return filed after issue of notice U/s. 142(1)

Sonal Steels Trading Pvt. Ltd Vs ACIT (ITAT Chennai) - Sonal Steels Trading Pvt. Ltd Vs ACIT (ITAT Chennai) Here admittedly, assessee was not maintaining any books. There was thus no question of recording any money, bullion, jewellery or any entry in any books. It is not disputed that assessee had not disclosed any receipts from bill trading before the ...

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Penalty u/s. 271AAB is not mandatory and is discretionary

DCIT Vs. Subhas Chandra Agarwala & Sons (HUF) (ITAT Kolkata) - Sub-section (1) of Sec. 271AAB of the Act uses the word may not shall. May cannot be equated with shall especially in penalty proceeding. Using the word may in our opinion, gives a discretion to the AO to levy the penalty or not to levy, even if the assessee has made default under said provision. Th...

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Recent Posts in "Section 271AAB"

Penalties under Income-Tax Act, 1961

Under the Income-tax Act, penalties are levied for various defaults committed by the taxpayer. Some of the penalties are mandatory and a few are at the discretion of the tax authorities. In this part, you can gain knowledge about the provisions relating to various penalties leviable under the Income-tax Act....

Read More
Posted Under: Income Tax | ,

Penalties and 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 |

Penalties imposable in Income Tax Search Cases

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. There are three modes built in the fiscal legislation for encouraging tax compliance: (a) Charge of Interest; (b) Imposition of penalty; (c) launching of prosecution agai...

Read More
Posted Under: Income Tax |

No Section 271AAB penalty In absence of mechanism to report investment in tax return

Gauri Shankar Kandoi Vs DCIT (ITAT Jaipur)

Where assessee was not required to maintain any books of account and there was no mechanism to report the investment in the tax return, the said investment could not be held as undisclosed investment and more so, undisclosed income so defined in section 271AAB, therefore, investment so found in purchase of Villa could not be termed as und...

Read More

Section 271AAB penalty cannot be levied based on defective notice

Ashok Bhatia Vs DCIT (ITAT Indore)

Penalty under section 271AAB levied on the basis of defective notice could not be sustained as  there was no mention about various conditions provided u/s 271 AAB as it was incumbent upon AO to mention in notice issued under section 274 read with section 271AAB as to under which clause of section 271AAB penalty was leviable and that too,...

Read More

Section 271AAB Penalty on undisclosed income where search has been initiated  

Section 271AAB of the Income Tax Act, 1961 deals with the penalty provisions. As per the said section, the penalty is payable on undisclosed income found during the search proceedings initiated under section 132 of the Income Tax Act. Section 271AAB contains two sub-section (1) and (1A). The applicability of both the sub-sections are expl...

Read More
Posted Under: Income Tax |

Section 271AAB Penalty justified if surrendered stock was unaccounted

M/s Royal Lifestyle Jewellers Pvt. Ltd Vs DCIT (ITAT Chandigarh)

Penalty under section 271AAB was justified as the surrender had been made on account of discrepancy /shortage in stock which had not been accounted for by assessee and the same was therefore rightly been held to qualify as “ undisclosed income” as per the definition in section 271AAB....

Read More

Penalty U/s. 271AAB justified on return filed after issue of notice U/s. 142(1)

Sonal Steels Trading Pvt. Ltd Vs ACIT (ITAT Chennai)

Sonal Steels Trading Pvt. Ltd Vs ACIT (ITAT Chennai) Here admittedly, assessee was not maintaining any books. There was thus no question of recording any money, bullion, jewellery or any entry in any books. It is not disputed that assessee had not disclosed any receipts from bill trading before the date of search to the […]...

Read More

Penalties under Various Sections of Income Tax Act, 1961

The punishment given in monetary terms for non-compliance to the Income Tax Act is called a Penalty. Following are the penalties under various sections: Section Description Penalty Imposed 140A(3) Default in payment of self-assessment tax, interest and fees or both Amount decided by the respective assessing officer restricted to arrears i...

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Posted Under: Income Tax |

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