“Section 139(1)(5)(c)”

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.

Subsidies granted under a Government Industrial Scheme to accelerate industrial development and generate employment are capital in nature, determined by the 'purpose test', regardless of the timing, source, or form of the subsidy.

There is no legal presumption that every person knows the law, and the maxim 'ignorantia juris non excusat' does not imply universal legal awareness. This principle is applied when evaluating whether a taxpayer's genuine belief or ignorance of law impacts their liability for penalties or constitutes reasonable cause.

A penalty under Section 271(1)(c) for furnishing inaccurate particulars of income is not attracted if the assessee offers a bonafide explanation, even though the distinction between concealment and furnishing inaccurate particulars can be thin or overlap.

Penalty under Section 271(1)(c) for concealment of income or furnishing inaccurate particulars is justified where an assessee discloses additional income after a departmental survey operation has detected irregularities, such as bogus expenditure, compelling the disclosure.

A return of income filed in response to a notice under Section 153A of the Income-tax Act is to be considered as a return filed under Section 139 of the Act for all other provisions, including the purpose of penalty under Section 271(1)(c).

An assessee cannot escape penalty under section 271(1)(c) for concealed income merely because they agreed to additions after detection and filed a return in response to departmental enquiry, or made tax payments to buy peace.

Income disclosed in a return filed in response to a notice under section 153C, following a search, which was not disclosed in the original return, constitutes a clear case of concealment attracting penalty under section 271(1)(c). Explanation 5 to section 271(1)(c) need not be invoked in such circumstances.