Section 271(1)(b) of the Income Tax Act

The decision most relied on for Section 271(1)(b) is Hindustan Steel Ltd. v. State of Orissa (83 ITR 26), cited in 502 of the 2,912 judgments on BharatTax that turn on this section.

Leading authorities on Section 271(1)(b)

Hindustan Steel Ltd. v. State of Orissa
83 ITR 26 · 1972 · Supreme Court
502
citing judgments

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.

Velu Palandar v. DCIT
83 ITR 683 · 1972 · High Court
94
citing judgments

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.

CIT v. Subodh Gupta
54 Taxmann.com 343 · 2015 · High Court
29
citing judgments

In the absence of material to show a net profit rate, the presumptive net profit rate of 8% under section 44AD can be used for estimating income. However, this 8% is not a sacrosanct profit ratio and depends on the specific facts of each case.

Vama Apparels (India) (P) Ltd. v. ACIT
102 Taxmann.com 398 · 2019 · High Court
22
citing judgments

A substantial delay in filing an appeal requires a proper explanation for the bulk of the period, not necessarily each day.

Smt. Rekha Rani v. DCIT
60 Taxmann.com 131 · 2015 · High Court
21
citing judgments

Penalty under Section 271(1)(b) for non-compliance with notices under Section 143(2) should be restricted to the first default only, as each notice should not trigger a separate penalty.

Rekha Rani v. DCIT
154 ITD 617 · 2015 · ITAT
19
citing judgments

Penalty under section 271(1)(b) cannot be imposed for each and every notice issued under section 143(2) that remains uncomplied with; it should be restricted to the first default only.

Bharat Aluminium Company Ltd. v. Union of India
134 Taxmann.com 187 · 2022 · High Court
18
citing judgments

An assessee has a vested right to a personal hearing in faceless assessment proceedings under section 144B. The granting of a personal hearing is not discretionary and must be provided based on the facts of each case, upholding the principles of natural justice.

M/S J.T. (India) Exports And Another v. Union Of India And Another
262 ITR 269 · 2003 · High Court
18
citing judgments

The principle of natural justice is essential for legal justice, and it can supplement or correct legal justice when the latter fails due to technicalities or omissions in law.

Oriental Investment Co. Ltd. v. CIT
32 ITR 664 · 1957 · Supreme Court
13
citing judgments

A finding of fact by the Income-tax Appellate Tribunal can be challenged as erroneous in law under section 66(1) if it is not supported by any evidence or is perverse.

CIT v. K.Ρ. Madhusudanan
246 ITR 218 · 2000 · High Court
12
citing judgments

Penalty for concealment of income requires circumstances that reasonably point to the conclusion that the disputed amount represented income and the assessee consciously concealed particulars or deliberately furnished inaccurate particulars. An assessee must offer an acceptable explanation for undisclosed income or inaccurate particulars to rebut the presumption of concealment.

Judgments on Section 271(1)(b)

M/S. Rose Valley Education Society, New Delhi vs. ITO (Exemptions), New Delhi

In the result, the appeals are dismissed

ITA 4551/DEL/2016[2012-13]Status: DisposedITAT Delhi17 Jan 2017AY 2012-13

Bench: Sh. R. S. Syalita Nos. 4551 & 4552/Del/2016 : Asstt. Year : 2012-13 M/S Rose Valley Education Vs Income Tax Officer (Exemption), C/O- Mahesh Kumar &Co., Flat Ward-2(4), No. 304, Arunachal Building, New Delhi Barakhamba Road, New Delhi-110001 (Appellant) (Respondent) Pan No. Aaatr3557K Assessee By : None Revenue By : Sh. V. K. Prasanth, Sr. Dr Date Of Hearing : 17.01.2017 Date Of Pronouncement : 17.01.2017 Order These Two Appeals By The Assessee Are Directed Against The Orders Dated 22.06.2016 & 27.06.2016 Passed By The Ld. Cit(A)-40 (Exemption) Against The Assessment Order Passed U/S 144 & Penalty Imposed U/S 271(1)(B) Of The Income-Tax Act, 1961 For The Assessment Year 2012-13. 2. Despite Sending Notice Of Hearing Sufficiently In Advance, Neither Assessee Attended Nor Any Application For Adjournment Has Been Received. It Is Thus Inferred That The Assessee Is Not Interested To Prosecute These Appeals. 2 Rose Valley Education Society 3. Having Regard To Rule 19(2) Of Itat Rules & Following Various Decisions Of Delhi Bench Of The Tribunal Including That Of Multiplan India Ltd. 38 Itd 320 (Delhi) & Hon’Ble Madhya Pradesh High Court’S Decision In Estate Of Late Tukojirao Holkar Vs Cwt; 223 Itr 480 (Mp), I Treat These Appeals As Unadmitted & Dismiss The Same.

For Appellant: NoneFor Respondent: Sh. V. K. Prasanth, Sr. DR
Section 144Section 271(1)(b)

Shri Rajeev Soni, Bhopal vs. The DCIT Central-1, Bhopal

The appeals of the assessees are allowed

ITA 1378/IND/2016[2011-12]Status: DisposedITAT Indore16 Jan 2017AY 2011-12

Bench: Shri D.T. Garasia & Shri O.P. Meena1 To 7 आ.अ.सं./ I.T.A. Nos.1361 To 1367/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1368 To 1374/Ind/2016 8 To 14 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 15 To 21 आ.अ.सं./ I.T.A. Nos.1375 To 1381/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 22 To 28 आ.अ.सं./ I.T.A. Nos.1382 To 1388/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1389 To 1395/Ind/2016 29 To 35 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 36 To 42 आ.अ.सं./ I.T.A. Nos.1396 To 1402/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 43 To 49 आ.अ.सं./ I.T.A. Nos.1403 To 1409/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1410 To 1416/Ind/2016 50 To 56 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 57 To 63 आ.अ.सं./ I.T.A. Nos.1417 To 1423/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 64 To 70 आ.अ.सं./ I.T.A. Nos.1424 To 1430/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1431 To 1437/Ind/2016 71 To 77 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 78 To 84 आ.अ.सं./ I.T.A. Nos.1438 To 1444/Ind/16 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 85 To 91 आ.अ.सं./ I.T.A. Nos.1445 To 1451/Ind/2016 "नधा"रण वष" /A.Y. :2008-09 To 2014-15 92 To 98 1452 To 1458/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 99 To 105 आ.अ.सं./ I.T.A. Nos.1459 To 1465/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15

Section 142(1)Section 271(1)(b)

Shri Rajeev Soni, Bhopal vs. The DCIT Central-1, Bhopal

The appeals of the assessees are allowed

ITA 1377/IND/2016[2010-11]Status: DisposedITAT Indore16 Jan 2017AY 2010-11

Bench: Shri D.T. Garasia & Shri O.P. Meena1 To 7 आ.अ.सं./ I.T.A. Nos.1361 To 1367/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1368 To 1374/Ind/2016 8 To 14 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 15 To 21 आ.अ.सं./ I.T.A. Nos.1375 To 1381/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 22 To 28 आ.अ.सं./ I.T.A. Nos.1382 To 1388/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1389 To 1395/Ind/2016 29 To 35 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 36 To 42 आ.अ.सं./ I.T.A. Nos.1396 To 1402/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 43 To 49 आ.अ.सं./ I.T.A. Nos.1403 To 1409/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1410 To 1416/Ind/2016 50 To 56 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 57 To 63 आ.अ.सं./ I.T.A. Nos.1417 To 1423/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 64 To 70 आ.अ.सं./ I.T.A. Nos.1424 To 1430/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 आ.अ.सं./ I.T.A. Nos.1431 To 1437/Ind/2016 71 To 77 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 78 To 84 आ.अ.सं./ I.T.A. Nos.1438 To 1444/Ind/16 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 85 To 91 आ.अ.सं./ I.T.A. Nos.1445 To 1451/Ind/2016 "नधा"रण वष" /A.Y. :2008-09 To 2014-15 92 To 98 1452 To 1458/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15 99 To 105 आ.अ.सं./ I.T.A. Nos.1459 To 1465/Ind/2016 "नधा"रण वष" /A.Ys. : 2008-09 To 2014-15

Section 142(1)Section 271(1)(b)