Section 271 of the Income Tax Act
The decision most relied on for Section 271 is Premier Breweries Ltd. v. Commissioner of Income Tax (372 ITR 180), cited in 52 of the 211 judgments on BharatTax that turn on this section.
Leading authorities on Section 271
Whether an assessee has shown 'reasonable cause' under Section 273B, particularly in the context of penalties under Section 271D for violations of Section 269SS, is a question of law involving a legal inference from primary facts. Penalties under Section 271D are not leviable if reasonable cause is established, even for journal entries, provided transactions are genuine and bona fide.
Benefits received by a company from its business operations, such as waived loans not used for capital assets, are taxable under section 28(iv) of the Income-tax Act, 1961.
The power to impose penalty under section 271 of the Income-tax Act depends on the Assessing Officer's satisfaction, which must be recorded during the proceedings. If the officer is not satisfied and has not recorded this satisfaction, the penalty cannot be exercised.
Section 149 of the Income Tax Act, 1961, only mandates the issuance of a notice within the prescribed period and does not require the notice to be served on the assessee within that same period.
Furnishing inaccurate particulars of income relates to particulars that have been provided by the assessee, while concealment of income means the income has not been declared at all. The phrase 'inaccurate particulars' is broader and can include inaccuracies that lead to under-declaration or escapement of income.
