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“penalty u/s 271(1)(c)”

PenaltySection 271(1)(c)Section 271(1)(c)2,277 judgments

The decision most relied on for penalty u/s 271(1)(c) is CIT v. Atul Mohan Bindal (9 SCC 589), cited in 200 judgments on BharatTax.

Leading authorities on penalty u/s 271(1)(c)

CIT v. Atul Mohan Bindal
9 SCC 589 · 2009 · Supreme Court
200
citing judgments

The Supreme Court clarifies the scope of penalty under Section 271(1)(c), holding that for its applicability, conditions stated in the provision must strictly exist, and making an incorrect claim in law does not automatically amount to furnishing inaccurate particulars of income.

CIT v. Subhash Trading Co. Ltd.
221 ITR 110 · 1996 · High Court
146
citing judgments

Penalty under Section 271(1)(c) of the Income Tax Act cannot be levied when an addition to income is based purely on an estimate, without concrete evidence proving concealment of income or furnishing of inaccurate particulars.

Prasanna Dugar v. CIT
70 Taxmann.com 175 · 2016 · Supreme Court
49
citing judgments

Penalty under section 271(1)(c) can be levied even if the assessee voluntarily discloses income after detection by the department or subsequent to a search, especially when the explanation provided is not bona fide or cannot be substantiated.

Ganga Iron & Steel Trading Co. v. Commissioner of Income Tax
135 Taxmann.com 244 · 2022 · High Court
45
citing judgments

A notice imposing penalty under section 271(1)(c) of the Income Tax Act is invalid if it shows non-application of mind by the Assessing Officer regarding the specific grounds for levying the penalty.

CIT v. Dhillon Rice Mills
256 ITR 447 · 2002 · High Court
30
citing judgments

Penalty under section 271(1)(c) is not leviable when additions to income are made on the basis of estimation, rather than on concrete evidence of concealment. Deletion of such a penalty is upheld.

ACIT v. Gebilal Kanhaialal HUF
348 ITR 561 · 2012 · Supreme Court
28
citing judgments

Section 271AAA penalty deletion can be based on the Apex Court's decision in ACIT v. Gebilal Kanhaialal HUF (2012) 348 ITR 561, particularly when there was no specific question put to the assessee about the manner of earning undisclosed income.

CIT v. Norton Electronics Systems (P) Ltd.
41 Taxmann.com 280 · 2014 · High Court
27
citing judgments

Penalty under Section 271(1)(c) is not sustainable when the income addition is made on an estimated basis without clinching material suggesting concealment or inaccurate particulars.

New Holland Tractors (India) (P.) Ltd. v. CIT
49 Taxmann.com 573 · 2014 · High Court
24
citing judgments

The charge of concealment of income and furnishing of inaccurate particulars of income may overlap. A taxpayer's conduct can be considered bonafide even if their submissions were rejected in the quantum appeal.

Judgments citing penalty u/s 271(1)(c)

Deputy Commissioner of Income Tax, Centre-Circle-7(1), Mumbai vs. M/S. Classic Shares and Stock Services Ltd., Mumbai

In the result, the appeal filed by the revenue is

ITA 1392/MUM/2022[2002-03]Status: DisposedITAT Mumbai30 Aug 2022AY 2002-03

Bench: Shri Baskaran Br & Shri Pavan Kumar Gadaledcit, Cc-7(1) Vs. M/S. Classic Shares R.No. 676B, 6Th Floor & Stock Services Aayakar Bhavan, Ltd., M.K. Road, 121, 1St Floor, Radha Mumbai-400020 Bhawan, Nigindas Master Road, Fort, Mumbai – 400023 Pan/Gir No. : Aaccc5745P Appellant .. Respondent Appellant By : Mr.Ujjawal Kumar.Dr Respondent By : Mr.Akash Kumar.Ar Date Of Hearing 25.08.2022 Date Of Pronouncement 29.08.2022 आदेश / O R D E R Per Pavan Kumar Gadale Jm: The Revenue Has Filed The Appeal Against The Order Of The Cit(A) Passed U/S 271(1)(C) & 250 Of The Act. The The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Mr.Ujjawal Kumar.DRFor Respondent: Mr.Akash Kumar.AR
Section 143(2)Section 271(1)(c)Section 292B

r.w.s 254 of the Act dated 27.12.2011. 4. Subsequently the A.O. has initiated penalty proceedings and issued show cause notice for levying penalty u/s 271(1)(c) of the Act. The A.O. found that against the quantum additions in the order passed under sec143(3) r.w.s ... notice without specifying nature/ reasons for initiation of penalty. whereas the Ld. CIT(A) dealt on the provisions on the initiation of penalty u/s 271(1)(c) of the Act. Finally the Ld. CIT(A) has considered the facts, circumstances judicial decisions and the jurisdictional Hon’ble High Court decisions

ACIT of Income Tax Circle-1, Kalyan vs. M/S. Thakor Electronics Ltd, Mumbai

Accordingly, the grounds raised by the revenue in both the years are dismissed

ITA 1673/MUM/2022[2009-10]Status: DisposedITAT Mumbai24 Aug 2022AY 2009-10

Bench: Shri Amit Shukla, Jm & Shri M Balaganesh, Am आयकरअपीलसं./ I.T.A. No. 1673 & 1674/Mum/2022 (निर्धारणवर्ा / Assessment Year: 2009-10 & 2010-11) M/S Thakor Electronics Acit Of Income Tax Circle-1 1St Floor, Mohan Plaza, Wayle Ltd. Nagar, Kalyan West-421301 P-1, P-2, 1St Floor, Shree बिधम/ Rajlxmi Hi-Tech Textile Vs. Park, Bhiwandi-Nashik By Pass Road, Sonale Village, Thane-421302 स्थायीलेखासं./जीआइआरसं./ Pan No. Aabct4323M (अपीलाथी/Appellant) (प्रत्यथी / Respondent) : अपीलाथीकीओरसे/ Appellant By : Shri Thanzil Padvekar, Ld. Dr प्रत्यथीकीओरसे/Respondent By : Shri U. R. Singh, Ld. Ar सुनवाईकीतारीख/ : 24.08.2022 Date Of Hearing घोषणाकीतारीख / : 24.08.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeals Have Been Filed By The Revenue Against The Separate Impugned Order Of Even Date 23.03.2022, Passed By National Faceless Appeal Centre, Delhi In Relation To Penalty

For Appellant: Shri Thanzil Padvekar, Ld. DRFor Respondent: Shri U. R. Singh, Ld. AR
Section 143(3)Section 271(1)(c)

sustained @ 25%. After giving effect to the same the order was passed dated 03.10.2016 by the ld.AO. The Ld. A.O. proceed the penalty u/s 271(1)(c) of the Act and levy of penalty on concealed income to extent of Rs. 19,43,354/- and penalty was calculated

Dlh Kamla Developers, Mumbai vs. DCIT CC- 3(4), Mumbai

ITA 1373/MUM/2019[2013-14]Status: DisposedITAT Mumbai22 Aug 2022AY 2013-14

Bench: Shri Amit Shukla, Jm & Shri M. Balaganesh, Am आयकरअपीलसं./ I.T.A. No. 1373 & 1374/Mum/2019 (ननधधारणवर्ा / Assessment Year: 2013-14 & 2014-15) Dcit Cen. Cir. -3(4), Dlh Kamla Developers 19Th Floor, Air India Ground Floor, Shanti बनाम/ Vimal, P. M. Road, Vile Building, Nariman Point, Vs. Parle East, Mumbai-400 021 Mumbai-400 057 स्थधयीलेखधसं./जीआइआरसं./ Pan No. Aahfd0790K (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : अपीलधथीकीओरसे/ Appellant By : None प्रत्यथीकीओरसे/Respondent By : Shri T. Shankar, Ld. Dr सुनवधईकीतधरीख/ : 22.08.2022 Date Of Hearing घोर्णधकीतधरीख / : 22.08.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeals Have Been Filed By The Assessee Against The Separate Impugned Order Of Even Date 24.12.2018, Passed By Ld. Cit(A)-51, Mumbai For The Quantum Of Assessment Passed U/S 143(3)/153A For Ay 2013-14 & Section 143(3) For Ay 2014-15. 2

For Appellant: NoneFor Respondent: Shri T. Shankar, Ld. DR
Section 131Section 132Section 132(4)Section 143(3)Section 153ASection 68

Rs.1,00,00,000/-)] is hereby disallowed and added back to the income of the assessee. Penalty u/s 271(1)(c) of the Act is initiated/for furnishing inaccurate particulars of income leading to concealment of income. 10 I.T.A. No. 1373 & 1374/Mum/2019 DLH Kamla Developers 9. Ld. CIT(A) has noted

Mr. Real Team System Pvt. Ltd, Mumbai vs. ITO 15 (3)(1), Mumbai

ITA 1389/MUM/2019[2014-15]Status: DisposedITAT Mumbai17 Aug 2022AY 2014-15

Bench: Shri Amit Shukla, Jm & Shri M. Balaganesh, Am आयकरअपीलसं./ I.T.A. No. 1389/Mum/2019 (ननधधारणवर्ा / Assessment Year: 2014-15) Ito 15(3)(1) M/S Real Team Aayakar Bhavan, M. K. Systems Pvt. Ltd. बनाम/ 1101, Bldg. No. 6, Road, Churchgate, Seawood Estates, Nri Mumbai-400 020 Vs. Complex, Navi Mumbai- 400 706 स्थधयीलेखधसं./जीआइआरसं./ Pan No. Aadcr0073Q (अपीलधथी/Appellant) (प्रत्यथी / Respondent) : अपीलधथीकीओरसे/ Appellant By : None प्रत्यथीकीओरसे/Respondent By : Shri Mahita Nayar, Ld. Dr सुनवधईकीतधरीख/ : 17.08.2022 Date Of Hearing घोर्णधकीतधरीख / : 17.08.2022 Date Of Pronouncement आदेश / O R D E R Per Amit Shukla: The Aforesaid Appeal Has Been Filed By The Assessee Against The Impugned Order Dated 27.12.2018, Passed By Ld. Cit(A), Mumbai In Relation To Penalty Proceedings U/S 271(1)(C) For Ay 2014-15. 2

For Appellant: NoneFor Respondent: Shri Mahita Nayar, Ld
Section 271(1)(c)

wherein it has been held that such bonafide mistakes made by the assessee cannot be the basis for imposition of penalty. Accordingly, penalty u/s 271(1)(c) cannot be imposed in these facts. Thus, the penalty levied by the AO is directed to be deleted. 8. In the net result

DCIT CC7 (2), Mumbai vs. M/S. Anik Industries Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 2267/MUM/2021[2004-05]Status: DisposedITAT Mumbai29 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Pavan Kumar Gadaledcit, Cc-7(2) Vs. M/S Anik Industries Ltd Room No. 655, 3Rd Floor, 610, Tulsiani Aayakar Bhavan, Chamber, Nariman Point Mk Road, Mumbai – 400021. Mumbai – 400020. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaacm2696K Appellant .. Respondent Appellant By : Smt Shailja Rai.Dr Respondent By : Shri.Bhupendra Shah.Ar Date Of Hearing 26.07.2022 Date Of Pronouncement 28.07.2022 आदेश / O R D E R Per Pavan Kumar Gadale, Jm: The Revenue Has Filed The Appeal Against The Order Passed By The Commissioner Of Income Tax (Appeals) U/S 271(1)(C) & 250 Of The Act. The Revenue Has Raised The Following Grounds Of Appeal:

For Appellant: Smt Shailja Rai.DRFor Respondent: Shri.Bhupendra Shah.AR
Section 143(2)Section 271(1)(c)

admitted and is pending for hearing. 3. Subsequently the A.O. has initiated penalty proceedings and issued show cause notice for levying penalty u/s 271(1)(c) of the Act. Whereas the assessee has filed the written submissions dated 12.12.2017 referred at page 2 of the penalty order supported with ... make out any case how the assessee has filed inaccurate particulars of income so as to warrant levy of penalty u/s 271(1)(c) of the Act. He also did not make any mention of how the submissions of the assessee for penalty not leviable in its case

Magestic Premises Pvt Ltd., Thane vs. DCIT CC 2, Thane

In the result, the appeal of the assessee is allowed

ITA 4974/MUM/2019[2011-12]Status: DisposedITAT Mumbai29 Jul 2022AY 2011-12

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.4974/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2011-12) Magestic Premises Pvt. Ltd. बिधम/ Dcit, Central Circle-2 201, 2Nd Floor, Oasis Silver Ashar It Park 6Th Floor, Vs. Stone, Near Gaganan Wagle Industrial Estate Maharaj Temple Ram (W), Thane-400604. Maruti Road, Thane, West, Thane-400601. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaecm5625L (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Prateek Jain Revenue By: Shri T. Sankar (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 26/07/2022 घोषणा की तारीख /Date Of Pronouncement: 29/07/2022 आदेश / O R D E R Per Aby T Varkey Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-11, Pune Dated 29.02.2016 For The Assessment Year 2011-12 Against The Penalty Confirmed U/S 271(1)(C) Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. The Main Grievance Of The Assessee Is Against The Action Of The Ld. Cit(A) Confirming The Penalty Levied By The Ao U/S 271(1)(C) Of The Act Without Issuing Valid Notice (Without Specifying The Fault/Charge). 3. At The Outset, We Note That There Is Delay Of More Than 1177 Days In Filing Of This Appeal. In The Condonation Of Appeal, The Assessee Has Filed An Affidavit Wherein The Assessee’S Director Has Sworn Before The Notary Public & Stated That Even Though The Impugned Order Was Passed U/S 153A Of The Act, It Was Handed Over To Him On 10.03.2016 & He In-Turn Handed Over The Same To One Of His Office Staff (Shri

For Appellant: Shri Prateek JainFor Respondent: Shri T. Sankar (Sr. AR)
Section 153ASection 271(1)(c)Section 274

delay of filing the appeal was not deliberate, we are inclined to condone the delay and admit the appeal against levy of penalty u/s 271(1)(c) of the Act. 3. We have heard both the parties and perused the records. At the outset, the Ld. AR assailing the action ... levying penalty u/s 271(1)(c) of the Act brought to our notice that the show cause notice issued by AO u/s 274 r.w.s 271(1)(c) of the Act dated 25.03.2014 has not spelled out specifically the fault/charge for which the assessee was being proceeded against with the proposed

Unique Estates Dev. Co. Pvt. Ltd, Mumbai vs. The DCIT Cent. Cir-4(1), Mumbai

In the result, the appeal of the assessee is allowed

ITA 2110/MUM/2021[2011-12]Status: DisposedITAT Mumbai28 Jul 2022AY 2011-12

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. No.2110/Mum/2021 (निर्धारण वर्ा / Assessment Years: 2011-12) Unique Estates Dev. Co. बिधम/ Dcit, Central Circle-4(1) Pvt. Ltd. Room No.1906, 19Th Vs. Construction House-B, 2Nd Floor, Air India Bldg, Floor, 623, Linking Road, Nariman Point, Mumbai- Khar (W), Mumbai-400052. 400021. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aaacu0699N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Sanjay B. Sawant Revenue By: Ms. Vranda U. Matkarni सुनवाई की तारीख / Date Of Hearing: 11/07/2022 घोषणा की तारीख /Date Of Pronouncement: 28/07/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-52, Mumbai Dated 26.10.2021 For Assessment Year 2011-12 Against The Penalty Confirmed U/S 271(1)(C) Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. The Main Grievance Of The Assessee Is As Under: - “1. On The Facts & In The Circumstances Of The Case & In Law, The Learned Cit(A) Erred In Confirming The Penalty Levied By The Ao U/S 271(1)(C) Of The Act, On Issue Of Advancing Of Interest Free Loans Of Rs.4,68,220/- & So Called Bogus Purchases Of Rs.5,84,076/-.” 3. At The Outset, The Ld. Ar Of The Assessee Shri Sanjay B. Sawant Brought To Our Notice That The Assessee Had Filed Return Of Income On 30.09.2011 Declaring The Total Income Of Rs.12,39,12,768/-. The Scrutiny Assessment Was Completed On 18.03.2014 U/S 143(3) Of The Act Assessing Total Income (Normal Computation) At Rs.21,59,51,554/-

For Appellant: Shri Sanjay B. SawantFor Respondent: Ms. Vranda U. Matkarni
Section 143(3)Section 14ASection 271(1)(c)

appeal before the Tribunal on 30.11.2015. 5. Meanwhile, the assessee was given a notice dated 18.03.2014 to explain as to why penalty u/s 271(1)(c) of the Act should not be levied. Pursuant to which the assessee requested the AO to specify the fault/charge against the assessee i.e. have ... mention about the fault/charge which the AO proposed to proceed against the assessee for levy of penalty. However, the AO levied the penalty u/s 271(1)(c) of the Act dated 29.03.2017 of Rs.3,01,56,969/-. Aggrieved by the aforesaid action of the AO, the assessee preferred an appeal

Roshan Sequeira, Mumbai vs. DCIT 24(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 343/MUM/2019[2009-10]Status: DisposedITAT Mumbai28 Jul 2022AY 2009-10

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.343/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2009-10) Shri Roshan Sequeira बिधम/ Dcit-24(3) Iqn Data Solutions Pvt. Piramal Chambers, Vs. Ltd., 347, Laxmi Plaza Indl. Mumbai-400012. Estate, Andheri (W), Mumbai-400059. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Asbps3025N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: None Revenue By: Smt. Mahita Nair (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 20/07/2022 घोषणा की तारीख /Date Of Pronouncement: 28/07/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-36, Mumbai Dated (Not Specified) For The Assessment Year 2009-10 Against The Penalty Confirmed U/S 271(1)(C) Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. None Appeared For The Assessee. The Main Grievance Of The Assessee Is Discernable From Grounds Of Appeal Is Against The Action Of The Ld. Cit(A) Confirming The Penalty Levied By The Ao U/S 271(1)(C) Of The Act To The Tune Of Rs.18,00,000/-. 3. At The Outset, We Note That A Notice Has Been Issued By The Ao Dated 04.03.2014 Proposing Levy Of Penalty U/S 271(1)(C) Of The Act Which According To Assessee Is Bad In Law. From A Perusal Of The Penalty Notice Dated 04.03.2014, We Note That The Ao Has Not Specified The Fault/Charge For Which Assessee Has Been Put To Notice For Levy Of Penalty. Meaning, The Show Cause Notice Does Not Specify For What

For Appellant: NoneFor Respondent: Smt. Mahita Nair (Sr. AR)
Section 271(1)(c)Section 274

outset, we note that a notice has been issued by the AO dated 04.03.2014 proposing levy of penalty u/s 271(1)(c) of the Act which according to assessee is bad in law. From a perusal of the penalty notice dated 04.03.2014, we note that the AO has not specified

Nna Cre Properties LLP, Mumbai vs. ACIT 20(2), Mumbai

In the result, the appeal of the assessee is allowed

ITA 1499/MUM/2021[2014-15]Status: DisposedITAT Mumbai22 Jul 2022AY 2014-15

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. No.1499/Mum/2021 (निर्धारण वर्ा / Assessment Years: 2014-15) Nna Cre Properties Llp बिधम/ Acit-20(2) B-4101, B-Wing, One Room No.217, 2Nd Floor, Vs. Avighna Park, Mahadeo Piramal Chambers, Palav Marg, Curry Road, Lalbaug, Mumbai- Parel, Mumbai-400012. 400012. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aakfn0759M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: None Revenue By: Shri Chetan M. Kacha (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 18/07/2022 घोषणा की तारीख /Date Of Pronouncement: 22/07/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)/(Nfac), Delhi Dated 23.06.2021 For The Assessment Year 2014-15 Against The Penalty Confirmed U/S 271(1)(C) Of The Income Tax Act, 1961 (Hereinafter “The Act”). 2. The Grounds Of Appeal Of The Assessee Are As Under: - “1. Learned Ao Erred In Law As Well As On Facts In Issuing Notice U/S 274 R.W.S 271(1)(C) Without Application Of Mind, As The Same Is Issued Without Mentioning That Whether It Is Levied For Concealment Of The Particulars Of Income Or Furnishing Inaccurate Particulars Of Income. It Is Note Know To Appellate As To Under Which Ground The Penalty Is Proposed To Be Levied. Hon. Cit(A) Has Also Erred In Not Considering The Same. 2. Learned Ao Erred In Law As Well As On Facts In Levying Penalty U/S 271(1)(C) Of Rs.1,29,503/- On Disallowance Of Interest Of Rs.4,19,102/-

For Appellant: NoneFor Respondent: Shri Chetan M. Kacha (Sr. AR)
Section 271(1)(c)Section 274Section 275

also erred in not considering the same. 2. Learned AO erred in law as well as on facts in levying penalty u/s 271(1)(c) of Rs.1,29,503/- on disallowance of interest of Rs.4,19,102/- 2 A.Y. 2014-15 NNA CRE Properties LLP under ‘Income From House Property ... erred in confirming the same. 3. Learned AO erred in law in levying penalty u/s 271(1)(c) before finalizing of the quantum proceedings as per the provisions of section 275 of the Act. The Hon. CIT(A) has erred in confirming the same.” 3. None appeared on behalf