Section 271AAC(1) of the Income Tax Act

Income-tax Act, 2025: s.443

Section 271AAC(1) falls under section 271AAC of the Income-tax Act, 1961, which corresponds to section 443 (Penalty in respect of certain income) of the Income-tax Act, 2025.

Read section 443 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 271AAC(1) is Office of the Chief Post Master General v. Living Media India Ltd. (348 ITR 7), cited in 50 of the 1,211 judgments on BharatTax that turn on this section.

Leading authorities on Section 271AAC(1)

Office of the Chief Post Master General v. Living Media India Ltd.
348 ITR 7 · 2012 · Supreme Court
50
citing judgments

The law of limitation applies to all, including the government. Condonation of delay in filing appeals requires a party to demonstrate sufficient, bona fide, and reasonable cause, as courts should not condone delays mechanically or for routine explanations, gross negligence, or inaction.

Sunder Carpet Industries v. ITO
324 ITR 417 · 2010 · High Court
30
citing judgments

A Departmental Valuer's Report constitutes material for forming a belief of escaped income, validating reassessment proceedings.

Commissioner of Income-tax, Chennai v. T. Rangroopchand Chordia
26 Taxmann.com 54 · 2012 · High Court
29
citing judgments

The Income Tax Act, 1961 allows for best judgment assessments even in cases of search assessments under Section 153A, especially when the assessee fails to file a return.

CIT v. General Insurance Corporation
286 ITR 232 · 2006 · Supreme Court
27
citing judgments

The Supreme Court case CIT v. General Insurance Corporation (286 ITR 232) is cited for the proposition that it dealt with the issue of bonus shares, and therefore may not be applicable to cases involving the increase of authorized share capital.

CIT v. Shadiram Balmukund
84 ITR 183 · 1972 · High Court
24
citing judgments

Penalty proceedings are vitiated if the Assessing Officer's satisfaction is not based on the order passed by the Assessing Officer or the CIT(A). The jurisdiction to impose penalty rests with the authority that is satisfied about the concealment or furnishing of inaccurate particulars of income.

ITO v. Madnani Engineering Works Ltd.
118 ITR 1 · 1979 · Supreme Court
21
citing judgments

An assessment cannot be reopened merely because the Income Tax Officer forms a different opinion on the facts already examined, especially after the assessee has fully disclosed all material facts.

(iii) Oracle India Pvt Ltd. v. Deputy Commissioner of Income Tax
13 DTR 371 · 2008 · Reported
15
citing judgments

The court considers whether to condone a delay in filing an appeal, taking into account the explanation provided and the arguments from both parties.

Dr. K.M. Mehaboob v. DCIT
130 Taxmann.com 130 · 2021 · High Court
12
citing judgments

Tribunals should not set aside an order passed by the CIT(A) without cogent reasons, and doing so without such reasons is arbitrary and unreasonable. However, the Supreme Court has affirmed this principle while dismissing an SLP on grounds of delay.

Emphasis1 Supplied) (iii) In K. K. Seshaiyer v. CIT
246 ITR 351 · 2000 · High Court
11
citing judgments

When an assessee has duly recorded the actual cost of construction and this cost has been accepted by the Tribunal, the opinion of a valuer cannot be substituted for the recorded cost without a finding that the building is of a better quality or larger than claimed.

MS Poonam Industries v. CIT
178 Taxmann 319 · 2009 · Reported
8
citing judgments

Judgments on Section 271AAC(1)

Assistant Commissioner of Income Tax, Corporate Circle 1(1), Chennai, Nungambakkam vs. Avilaa Exports Private Limited, Mannady, Chennai

In the result, appeal filed by the Revenue is dismissed

ITA 770/CHNY/2024[2017-18]Status: DisposedITAT Chennai30 Aug 2024AY 2017-18

Bench: Shri Aby T. Varkey & Shri S.R. Raghunathaआयकर अपील सं./Ita No.770/Chny/2024 िनधा8रण वष8 /Assessment Year: 2017-18 The Asst. Commissioner Of Avilaa Exports Pvt. Ltd., Income Tax, Vs. Old No.269, New No.126, 4Th Floor, Thambu Chetty Street, Corporate Circle-1(1), Chennai. Mannady, Chennai-600001. [Pan: Aajca 2473K] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" की ओर से/ Assessee By : Shri Akshit Jain, C.A Fgथ" की ओर से /Revenue By : Shri A. Sasikumar, Cit सुनवाई की तारीख/Date Of Hearing : 19.06.2024 घोषणा की तारीख /Date Of Pronouncement : 30.08.2024 आदेश / O R D E R Per S.R. Raghunatha, A.M : This Appeal By The Revenue Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals), [Nfac], Delhi [Hereinafter “Cit(A)] In Din & Order No.Itba/Nfac/S/250/2023- 24/1060339451(1), Dated 31.01.2024. The Assessment Was Framed By The Assessing Officer For The Assessment Year 2017-18 U/S. 147 R.W.S 144 R.W.S 144B Of The Income Tax Act, 1961 (Hereinafter The ‘Act’), Vide Order Dated 15.01.2022. :- 2 -: 2. The Grounds Of Appeal Raised By The Revenue Are As Under:

For Appellant: Shri Akshit Jain, C.A FGFor Respondent: Shri A. Sasikumar, CIT
Section 139(1)Section 143(1)Section 143(3)Section 147Section 148

Saroj Kanta Swain, Jajpur vs. ITO, Jajpur Ward, Jajpur

In the result, appeal of the assessee stands partly allowed for statistical purposes

ITA 262/CTK/2024[2018-19]Status: DisposedITAT Cuttack28 Aug 2024AY 2018-19

Bench: Before Shri George Mathan, Judicialassessment Year : 2018-19 Saroj Saroj Kanta Kanta Swain, Swain, Vill: Vs. Ito, Ward, Jajpur Ito, Ward, Jajpur Kadala Kadala Po: Po: Haridaspur, Haridaspur, Neulpur, Jajpur Neulpur, Jajpur-755024 Pan/Gir No Pan/Gir No.Clips 9960 A (Appellant (Appellant) .. ( Respondent Respondent) Assessee By : Shri P.R.Mohanty, Adv P.R.Mohanty, Adv Revenue By : Shri S.C.Mohanty, Ld Sr Dr , Ld Sr Dr Date Of Hearing : 28/0 08/2024 Date Of Pronouncement : 28/0 /08/2024 O R D E R This Is An Appeal Filed By The Assessee Aga This Is An Appeal Filed By The Assessee Against The Order Of The Ld Inst The Order Of The Ld Cit(A), Nfac, Delhi Cit(A), Nfac, Delhi Dated 12.2.2024 In Appeal No. In Appeal No.Nfac/2017- 18/10296242 For The Assessment Year 2018-19. 2. Shri P.R.Mohanty P.R.Mohanty, Ld Ar Assisted By Ms Pragyan Baliarsingh, Intern, Assisted By Ms Pragyan Baliarsingh, Intern, The Law College, Cuttack The Law College, Cuttack Appeared For The Assessee. Shri S.C.Mohanty The Assessee. Shri S.C.Mohanty, Ld Sr Dr Assisted By Intern Ms Swagatika Behera, The Law College, Cuttack Assisted By Intern Ms Swagatika Behera, The Law College, Cuttack Assisted By Intern Ms Swagatika Behera, The Law College, Cuttack Represented On Behalf Of The Revenue. Represented On Behalf Of The Revenue.

For Appellant: Shri P.R.Mohanty, AdvFor Respondent: Shri S.C.Mohanty, ld Sr DR