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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)

Rakesh Bhatt, New Delhi vs. ACIT Central Circle-18, New Delhi

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

ITA 1181/DEL/2023[2016-17]Status: DisposedITAT Delhi28 Mar 2025AY 2016-17

Bench: Shris.Rifaur Rahmanbhl Forex & Finlease Limited, Vs. Dcit, Central Circle - 2, 6, Mohan Singh Place, New Delhi. Connaught Place, New Delhi – 110 001. (Pan : Aabcb8886H) (Appellant) (Respondent) Assessee By : Ms. Gini Gandhi, Advocate Ms. Anu Bajaj, Advocate Revenue By : Shri Sanjay Kumar, Sr. Dr Date Of Hearing : 13.03.2025 Date Of Order : 14.05.2025 O R D E R 1. The Assessee Has Filed This Appeal Against The Order Of The Learned Commissioner Of Income Tax (Appeals)-23, New Delhi [“Ld. Cit(A)”, For Short] Dated 11.07.2023 For The Assessment Year 2014-15. 2. At The Time Of Hearing, Ld. Ar Of The Assessee Submitted That The Appeal Filed By The Assessee Is Against Imposition Of Penalty Under Section 271(1)(C) Of The Income-Tax Act, 1961 (For Short ‘The Act’). In This Regard, He Submitted That Assessee Has Filed Its Original Return Of Income U/S 139(4) Of The Act Which Was Belated Return & Declared The Loss. As Per The Provisions Of The Act, The Losses Declared In The Belated Returns

For Appellant: Ms. Gini Gandhi, AdvocateFor Respondent: Shri Sanjay Kumar, Sr. DR
Section 139Section 139(4)Section 147Section 148Section 14ASection 271(1)(c)

page 15 of the paper book which is the revised return of income filed on 29.03.2023. He prayed that the imposition of penalty u/s 271(1)(c) be deleted and he relied on the following case laws :- (i) Delhi ITAT in the case of Toscana Lasts Limited

Raju Mohan Gurnani, Navi Mumbai vs. Income Tax Officer, Central Circle 5(2), Mumbai

In the result, all three appeals of the assessee are allowed

ITA 248/MUM/2025[2016-17]Status: DisposedITAT Mumbai27 Mar 2025AY 2016-17

Bench: Shri Rahul Chaudhary & Smt. Renu Jauhriआयकर अपील सं./Ita No. 246/Mum/2025 (निर्धारण वर्ा / Assessment Year :2014-15) आयकर अपील सं./Ita No. 247/Mum/2025 (निर्धारण वर्ा / Assessment Year :2015-16) आयकर अपील सं./Ita No. 248/Mum/2025 (निर्धारण वर्ा / Assessment Year :2016-17) Raju Mohan Gurnani V/S. Ito, Central Circle 5(2) बिधम Flat No. 2101, Moraj Casa Room No. 427, 4Th Floor, Grande, Plot No. 57, Sector Kautilya Bhavan, Bandra 17, Koperkhairne Kurla Complex, Bandra Maharashtra-410209 East, Maharashtra-400051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aalpg9103B Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee By: None रधजस्व की ओर से /Revenue By: Shri R. R. Makwana

For Appellant: NoneFor Respondent: Shri R. R. Makwana
Section 143(3)Section 153ASection 250Section 271(1)(c)Section 275

assessee has raised the following grounds of appeal: AY 2014-15 “GROUND NO. 1: LEVY OF PENALTY U/S 271(1)(c) OF RS. 91,360/- (a) The Id. CIT(A) erred in law and on facts in confirming the levy of penalty u/s. 271(1)(c), for concealment of income ... notional income of Rs. 3,91,467/- representing the annual letting value determined by AO and further erred in levying penalty u/s 271(1)(c) in respect of a search assessment u/s 143(3) r.w.s. 153A ignoring that; i. AO had failed to re-compute the Annual Letting Value

Raju Mohan Gurnani, Navi Mumbai vs. Income Tax Officer, Central Circle 5(2), Mumbai

In the result, all three appeals of the assessee are allowed

ITA 247/MUM/2025[2015-16]Status: DisposedITAT Mumbai27 Mar 2025AY 2015-16

Bench: Shri Rahul Chaudhary & Smt. Renu Jauhriआयकर अपील सं./Ita No. 246/Mum/2025 (निर्धारण वर्ा / Assessment Year :2014-15) आयकर अपील सं./Ita No. 247/Mum/2025 (निर्धारण वर्ा / Assessment Year :2015-16) आयकर अपील सं./Ita No. 248/Mum/2025 (निर्धारण वर्ा / Assessment Year :2016-17) Raju Mohan Gurnani V/S. Ito, Central Circle 5(2) बिधम Flat No. 2101, Moraj Casa Room No. 427, 4Th Floor, Grande, Plot No. 57, Sector Kautilya Bhavan, Bandra 17, Koperkhairne Kurla Complex, Bandra Maharashtra-410209 East, Maharashtra-400051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aalpg9103B Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee By: None रधजस्व की ओर से /Revenue By: Shri R. R. Makwana

For Appellant: NoneFor Respondent: Shri R. R. Makwana
Section 143(3)Section 153ASection 250Section 271(1)(c)Section 275

assessee has raised the following grounds of appeal: AY 2014-15 “GROUND NO. 1: LEVY OF PENALTY U/S 271(1)(c) OF RS. 91,360/- (a) The Id. CIT(A) erred in law and on facts in confirming the levy of penalty u/s. 271(1)(c), for concealment of income ... notional income of Rs. 3,91,467/- representing the annual letting value determined by AO and further erred in levying penalty u/s 271(1)(c) in respect of a search assessment u/s 143(3) r.w.s. 153A ignoring that; i. AO had failed to re-compute the Annual Letting Value

Raju Mohan Gurnani, Navi Mumbai vs. Central Circle 5(2), Mumbai

In the result, all three appeals of the assessee are allowed

ITA 246/MUM/2025[2014-15]Status: DisposedITAT Mumbai27 Mar 2025AY 2014-15

Bench: Shri Rahul Chaudhary & Smt. Renu Jauhriआयकर अपील सं./Ita No. 246/Mum/2025 (निर्धारण वर्ा / Assessment Year :2014-15) आयकर अपील सं./Ita No. 247/Mum/2025 (निर्धारण वर्ा / Assessment Year :2015-16) आयकर अपील सं./Ita No. 248/Mum/2025 (निर्धारण वर्ा / Assessment Year :2016-17) Raju Mohan Gurnani V/S. Ito, Central Circle 5(2) बिधम Flat No. 2101, Moraj Casa Room No. 427, 4Th Floor, Grande, Plot No. 57, Sector Kautilya Bhavan, Bandra 17, Koperkhairne Kurla Complex, Bandra Maharashtra-410209 East, Maharashtra-400051 स्थायी लेखा सं./जीआइआर सं./Pan/Gir No: Aalpg9103B Appellant/अपीलधर्थी .. Respondent/प्रनिवधदी निर्ााररती की ओर से /Assessee By: None रधजस्व की ओर से /Revenue By: Shri R. R. Makwana

For Appellant: NoneFor Respondent: Shri R. R. Makwana
Section 143(3)Section 153ASection 250Section 271(1)(c)Section 275

assessee has raised the following grounds of appeal: AY 2014-15 “GROUND NO. 1: LEVY OF PENALTY U/S 271(1)(c) OF RS. 91,360/- (a) The Id. CIT(A) erred in law and on facts in confirming the levy of penalty u/s. 271(1)(c), for concealment of income ... notional income of Rs. 3,91,467/- representing the annual letting value determined by AO and further erred in levying penalty u/s 271(1)(c) in respect of a search assessment u/s 143(3) r.w.s. 153A ignoring that; i. AO had failed to re-compute the Annual Letting Value