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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)

Kavita Balraj Lanjile, Pashan vs. ITO, Pune

In the result, the appeal filed by the assesse is allowed

ITA 1758/PUN/2025[2014-2015]Status: DisposedITAT Pune14 Oct 2025AY 2014-2015

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1758/Pun/2025 िनधा"रण वष" / Assessment Year : 2014-15 Kavita Balraj Lanjile, Vs. Ito, Ward-11(2), Pune. Flat No.401, Bldg. No.A-2, Shivranjan Tower, Someshwarwadi, Pune- 411008. Pan : Aaqpl5138C Appellant Respondent Assessee By : Shri Bharat Shah Revenue By : Shri Harshit Bari Date Of Hearing : 21.08.2025 Date Of Pronouncement : 14.10.2025 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 23.01.2024 Passed U/S 271(1)(C) Of The It Act By Ld. Cit(A)/Nfac For The Assessment Year 2014-15. 2. Facts Of The Case, In Brief, Are That The Assessee Is An Individual Having Income From Profession & Business Income In The Shape Of Interest On Capital & Remuneration From Partnership Firm & Also Agricultural Income. The Assessee Furnished Her Return Of Income On 17.07.2014 Disclosing Professional Income, Income From Other

For Appellant: Shri Bharat ShahFor Respondent: Shri Harshit Bari
Section 139(5)Section 143(2)Section 143(3)Section 271(1)(c)Section 274Section 44A

Assessing Officer issued notice u/s 271(1)(c) of the Act dated 04.01.2017 and after considering the reply of the assessee, imposed penalty u/s 271(1)(c) of the Act for Rs.1,68,657/-. 3 3. The assessee furnished an appeal before Ld. CIT(A)/NFAC against the above penalty ... Broadcasting Ltd. deleted the penalty which was imposed on the basis of similar defective notice. Accordingly, Ld. AR requested to delete the penalty u/s 271(1)(c) of the Act and allow the appeal of the assessee. 6. Ld. DR appearing from side of the Revenue relied on the orders