“Section 271(1)(6)”
The decision most relied on for Section 271(1)(6) is Harigopal Singh v. CIT (258 ITR 85), cited in 203 judgments on BharatTax.
Leading authorities on Section 271(1)(6)
Penalty under section 271(1)(c) cannot be levied when an addition to income is made on an estimated basis without concrete evidence of concealment or furnishing inaccurate particulars of income. The provisions of section 271(1)(c) are not attracted to cases where income is assessed on an estimate basis.
The Assessing Officer's belief that income has escaped assessment, leading to the reopening of an assessment, is a matter of subjective satisfaction. The materials available at the time of forming this belief do not need to conclusively prove the escapement of income.
The Kerala High Court held that charitable institutions claiming exemption under Section 11 are not entitled to claim depreciation on assets used for charitable purposes, taking a view contrary to most other High Courts.
The levy of penalty under Section 271(1)(c) requires material evidence that the assessed amount does not represent the assessee's income and proof of conscious concealment or furnishing inaccurate particulars. A penalty cannot be sustained merely because income is assessed on an estimation basis without positive evidence of concealment.
Penalty under section 271(1)(c) of the Income-tax Act is not leviable when an addition to income is made purely on an estimated basis, without any concrete evidence of concealment or furnishing of inaccurate particulars.
An assessee is liable to penalty under Section 271(1)(c) read with Explanation 1 if they make a claim that is incorrect in law, wholly without basis, and the explanation furnished for such a claim is not bona fide.
The Assessing Officer cannot arbitrarily reject a share valuation report prepared by an expert using recognized methods like NAV or DCF for the purpose of Section 56(2)(viib) without providing valid reasons to demonstrate its perversity or unreasonableness.
The assessee bears the prima facie burden to prove the identity of the lender or investor and the genuineness of the transaction concerning cash credits or unexplained share capital, which is discharged by providing sufficient details like PAN and addresses.
