“Section 271(1)(d)”
The decision most relied on for Section 271(1)(d) is Hindustan Steel Ltd. v. State of Orissa (83 ITR 26), cited in 502 judgments on BharatTax.
Leading authorities on Section 271(1)(d)
An order imposing penalty for failure to carry out a statutory obligation results from quasi-criminal proceedings. Penalty is not ordinarily imposed unless the party acted deliberately in defiance of law, was guilty of contumacious or dishonest conduct, or acted in conscious disregard of their obligation.
The claim of depreciation under Section 32 of the Income Tax Act for assets used by charitable trusts is permissible, affirming the Bombay High Court's view that such a claim does not amount to a 'double benefit'.
The Assessing Officer must record clear satisfaction in the assessment order that the assessee concealed particulars of income or furnished inaccurate particulars, for initiating penalty proceedings under section 271(1)(c). Without such recorded satisfaction, the penalty proceedings lack jurisdiction and are unsustainable in law.
The opportunity of hearing provided to an assessee must be real, effective, and realistic, not merely notional, and tax authorities are incumbent to decide cases on their merits after affording due opportunity.
Revision under Section 263 requires an assessment order to be both erroneous and prejudicial to the revenue. It is not permissible if the Assessing Officer adopted a legally permissible view, one of two possible views, or applied mind to the issues, despite the Commissioner's differing opinion or perceived inadequate enquiry.
Debatable issues cannot be rectified under Section 154 of the Income-tax Act, as rectification is limited to mistakes apparent from the record.
To levy a penalty under section 271(1)(b), the Assessing Officer (AO) must record satisfaction in the assessment order. Mere initiation of penalty proceedings without such recorded satisfaction does not confer jurisdiction on the AO to levy the penalty.
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.
