Section 271(1)(a) of the Income Tax Act
The decision most relied on for Section 271(1)(a) is Addl. CIT v. J.K. D'Costa (133 ITR 7), cited in 57 of the 50 judgments on BharatTax that turn on this section.
Leading authorities on Section 271(1)(a)
Debatable issues cannot be rectified under Section 154 of the Income-tax Act, as rectification is limited to mistakes apparent from the record.
The revisional power of the Commissioner under section 263 can be exercised when the Assessing Officer has not initiated penalty proceedings under section 271(1)(c) in the assessment order, and the CIT finds such omission to be erroneous.
An assessment order is not considered erroneous or prejudicial to the revenue under Section 263 solely because the Assessing Officer failed to initiate penalty proceedings. The Commissioner cannot direct the initiation of penalty proceedings under Section 263, as they are distinct from assessment proceedings.
The Commissioner of Income Tax cannot use their revisionary power under Section 263 to direct the initiation of penalty proceedings, as penalty proceedings are distinct and separate from assessment proceedings.
Addition to the profit of an assessee cannot be made solely on the ground of low profits without a specific finding that the assessee's accounts are incorrect or incomplete. The Assessing Officer cannot dispute the assessee's method of accounting or claim a change in method without justification.
The Commissioner of Income Tax (CIT) cannot direct the Assessing Officer (AO) to initiate penalty proceedings under Section 271(1)(c) in exercise of revisional power under Section 263 of the Act, if the AO had not initiated such proceedings in the assessment order.
When the Assessing Officer does not initiate penalty proceedings under Section 271(1)(c) in the assessment order, the Commissioner cannot direct the Assessing Officer to initiate them, as penalty proceedings are distinct from assessment proceedings.
Revisionary powers under section 263 cannot be invoked solely to direct the initiation of penalty proceedings.
The Commissioner of Income Tax (CIT) cannot direct the Assessing Officer to initiate penalty proceedings under section 271(1)(a) or section 273(2)(c) while exercising powers under section 263, as the CIT himself is not empowered to record the satisfaction for such penalties.
The Commissioner (CIT) cannot direct the Assessing Officer (AO) to initiate penalty proceedings under Section 270A of the Income Tax Act while exercising revisional powers under Section 263, as penalty proceedings are distinct from assessment proceedings. The CIT cannot pass an order under Section 263 pertaining to penalty.
