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)

Sudheer Chamarthi, Guntur vs. Income Tax Officer, Ward-1(1), Guntur

In the result, appeal of the assessee is partly allowed

ITA 216/VIZ/2022[2017-18]Status: DisposedITAT Visakhapatnam18 Oct 2023AY 2017-18

Bench: Shri Duvvuru Rl Reddy, Hon’Bleआयकर अपील सं./I.T.A.No.216/Viz/2022 (ननधधारण वर्ा / Assessment Year :2017-18) Sudheer Chamarthi Vs. Income Tax Officer 12-17-36/1, Somuvari Street Ward-1(1) Kothapet Guntur Guntur [Pan : Axnpc8454A] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri G.V.N.Hari, Ar प्रत्यधथी की ओर से / Respondent By : Shri Madhukar Aves, Dr सुनवधई की तधरीख / Date Of Hearing : 14.09.2023 घोर्णध की तधरीख/Date Of Pronouncement : 18.10.2023 आदेश /O R D E R Per Shri Duvvuru Rl Reddy: This Appeal Is Filed By The Assessee Against The Order Of Commissioner Of Income Tax (Appeal) [Cit(A)], National Faceless Appeal Centre (Nfac), Delhi In Din & Order No.Itba/Nfac/S/250/2021- 22/1041354665(1) Dated 23.03.2022 For The Assessment Year (A.Y.)2017-18 With The Delay Of 163 Days. The Assessee Filed An Affidavit, Submitting That The Order Of The Ld.Cit(A) Was Uploaded In E-Filing Portal & It Was Not Served Physically. The Assessee Submitted That All His Income Tax Matters Were Entrusted To A Chartered Accountant, Who Did

For Appellant: Shri G.V.N.Hari, ARFor Respondent: Shri Madhukar Aves, DR
Section 143(1)Section 143(2)Section 143(3)Section 271ASection 69Section 69A

Kailasam Pillai Saravanan, Trichy vs. ITO, Ward - 1, Trichy

The appeal stand allowed for statistical purposes

ITA 1021/CHNY/2022[2017-2018]Status: DisposedITAT Chennai24 Jul 2023AY 2017-2018

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.1021/Chny/2022 (िनधा*रण वष* / Assessment Year: 2017-18) Shri Kailasam Pillai Saravanan Ito बनाम 6/90, North Street, Elurpatti Thottiyam, Ward-1(1), Trichy. / Vs. Trichy-621 215. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Bxops-8501-G (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : None " थ"कीओरसे/Respondent By : Shri D. Hema Bhupal (Jcit)- Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 20-07-2023 घोषणाकीतारीख /Date Of Pronouncement : 24-07-2023 आदेश / O R D E R Manoj Kumar Aggarwal () 1. The Sole Grievance Of The Assessee In The Captioned Appeal Is Confirmation Of Penalty U/S. 271Aac(1) For Rs.3.62 Lacs. At The Time Of Hearing, None Appeared For Assessee & Accordingly, The Appeal Was Proceeded For Disposal With The Able Assistance Of Ld. Sr. Dr. 2. From Case Records, It Emerges That An Ex-Parte Assessment Was Framed Against The Assessee U/S. 144 On 25.11.2019 Wherein Certain Additions Were Made U/S.69A On Account Of Cash Deposit Made In The Bank Account Of The Assessee. Against Quantum Addition, Ld. Ao Levied

For Appellant: NoneFor Respondent: Shri D. Hema Bhupal (JCIT)- Ld. Sr. DR
Section 144Section 271ASection 69A