Section 271AAB

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 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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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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CIT(A) given power to levy section 271AAB, 271AAC & 271AAD penalty

Income Tax - It is proposed to amend the sections 271AAB, 271AAC and 271AAD by enabling the Commissioner (Appeals) to levy penalty under these sections to the along with Assessing Officer....

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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 – 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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Approval accorded u/s. 153D without application of mind is unenforceable in law

M.G. Metalloy Private Limited Vs DCIT (ITAT Delhi) - ITAT Delhi held that hollow and cosmetic approval accorded under section 153D of the Income Tax Act without application of mind is unenforceable in law and hence liable to be quashed....

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Once penalty u/s 271AAB applied in search addition, invoking provision of section 115BBE unjustified

Sandeep Sethi Vs DCIT (ITAT Jaipur) - ITAT Jaipur held that once penal provisions under section 271AAB of the Income Tax Act are applied in case of search addition, invoking provision of section 115BBE is not in accordance with law and accordingly unsustainable....

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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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Penalty u/s 271AAB not imposable in absence of specific charge

Sushil Kumar Paul Vs ACIT (ITAT Kolkata) - ITAT Kolkata held the levy of penalty under section 271AAB of the Income Tax Act without specifying the charge on which the same is imposable is unsustainable in law....

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Show cause notice issued in routine manner cannot be considered a valid notice

Smt. Priyanka Agarwal Vs DCIT (ITAT Jaipur) - Smt. Priyanka Agarwal Vs DCIT (ITAT Jaipur) Taking into facts and circumstances of the case it is an evident from the show cause notice u/s 274 read with section 271AAB of the Act that the Assessing Officer was not clear i.e whether it is for the clause (a) or clause (b) or clause (c) of […]...

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Recent Posts in "Section 271AAB"

Approval accorded u/s. 153D without application of mind is unenforceable in law

M.G. Metalloy Private Limited Vs DCIT (ITAT Delhi)

ITAT Delhi held that hollow and cosmetic approval accorded under section 153D of the Income Tax Act without application of mind is unenforceable in law and hence liable to be quashed....

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Once penalty u/s 271AAB applied in search addition, invoking provision of section 115BBE unjustified

Sandeep Sethi Vs DCIT (ITAT Jaipur)

ITAT Jaipur held that once penal provisions under section 271AAB of the Income Tax Act are applied in case of search addition, invoking provision of section 115BBE is not in accordance with law and accordingly unsustainable....

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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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Penalty u/s 271AAB not imposable in absence of specific charge

Sushil Kumar Paul Vs ACIT (ITAT Kolkata)

ITAT Kolkata held the levy of penalty under section 271AAB of the Income Tax Act without specifying the charge on which the same is imposable is unsustainable in law....

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Show cause notice issued in routine manner cannot be considered a valid notice

Smt. Priyanka Agarwal Vs DCIT (ITAT Jaipur)

Smt. Priyanka Agarwal Vs DCIT (ITAT Jaipur) Taking into facts and circumstances of the case it is an evident from the show cause notice u/s 274 read with section 271AAB of the Act that the Assessing Officer was not clear i.e whether it is for the clause (a) or clause (b) or clause (c) of […]...

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Penalty notice become defective if it does not disclose specific charge

ACIT Vs Amit Tiwari (ITAT Indore)

ACIT Vs Amit Tiwari (ITAT Indore) The submissions of the assessee are that penalty proceedings u/s 271AAB as initiated is bad in law on account of firstly penalty notice so issued is defective as it does not disclose specific charge and secondly there is no concealed income as search took place prior to due date […]...

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Penalty u/s. 271AAB cannot be levied based on disclosure of other person

ACIT Vs Arjun Lal Agarwal (ITAT Kolkata)

ITAT Kolkata held that penalty u/s 271AAB of the Income Tax Act cannot be levied on the assessee based on the disclosure made by other person during the course of search proceedings....

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Section 271AAB penalty not imposable if no Search Conducted on Assessee

ACIT Vs Clean Coal Enterprises Pvt. Limited (ITAT Kolkata)

A perusal of Section 271AAB would reveal that it is applicable where search has been initiated under section 132 of Income Tax Act...

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Section 271AAB penalty upheld on Income Tax return filed belated

Jagdishbhai R. Patel Vs ACIT (ITAT Ahmedabad)

Jagdishbhai R. Patel Vs ACIT (ITAT Ahmedabad) CIT(A) upheld the penalty of Rs.19,50,000/-,levied u/s 271AAB of the Act @ 30% of the undisclosed income of Rs.65 lacs, noting that the assessee had failed to fulfill the following conditions by the specified date as required by the section : a) filing its return declaring the undisclosed [&he...

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Section 271AAB penalty not valid if AO not mention specific default of assessee

Mahaveer Prasad Agarwal Vs DCIT (ITAT Jaipur)

Mahaveer Prasad Agarwal Vs DCIT (ITAT Jaipur) A conjoint reading of section 271AAB and section 271 of the Act indicate that imposition of penalty under section 271AAB of the Act is not mandatory but discretionary. Hence, in our view, the penalty under section 271AAB be imposed on merits of each case. 5.1. In case of […]...

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