'Concealment Of Income' & 'Furnishing Inaccurate Income Particulars' Distinct Grounds For Penalty U/S 271(1)(c) Of IT Act, Can't Be Clubbed: Delhi HC
3 months, 3 weeks ago

'Concealment Of Income' & 'Furnishing Inaccurate Income Particulars' Distinct Grounds For Penalty U/S 271(1)(c) Of IT Act, Can't Be Clubbed: Delhi HC

Live Law  

The Delhi High Court has made it clear that when the Revenue proposes to impose penalty on an assessee under Section 271 of the Income Tax Act, 1961 for alleged 'concealment of particulars of income' or for 'furnishing inaccurate particulars of income'- it must specify which one of the two charges it seeks to press and the Revenue cannot be permitted to club both. It submitted that there is an overlap between the phrases “concealment of particulars of his income” and “furnished inaccurate particulars of such income” and effectively, there is no prejudice to the assessee in terms of them not being put to notice. “Concealment of income and furnishing of inaccurate particulars of income in Section 271 of the Act carry different meanings and connotation. “Finding in the assessment proceedings is not conclusive and final for the purpose of imposition of the penalty under Section 271 of the Act, inasmuch as…Penalty is imposed not because an addition is made but because there is concealment or furnishing of inaccurate particulars by the assessee,” it said.

Penalty Revenue Itat Assessee Inaccurate Particulars Inaccurate Concealment Income Particulars  income  particulars  revenue  hc  assessee  high  delhi  concealment  distinct  court  inaccurate  proceedings  furnishing  grounds  penalty

History of this topic

Merely Making Unsustainable Claim Will Not Amount To Furnishing Of Inaccurate Particulars Of Income: ITAT
2 years, 1 month ago

Merely Making Unsustainable Claim Will Not Amount To Furnishing Of Inaccurate Particulars Of Income: ITAT

Live Law  

The Pune bench of the Income Tax Appellate Tribunal has held that the mere making of a claim, which is not sustainable by the law itself, will not amount to furnishing inaccurate particulars of income.The bench of S.S. Vishwanethra has observed that the appellant cannot be held guilty of furnishing inaccurate particulars of income, and, therefore, the Assessing. The Pune …

Notice Didn't Contain Categorical Indication Of Furnishing Inaccurate Particulars Or Concealment Of Particular Income: ITAT Quashes Penalty Proceedings
2 years, 8 months ago

Notice Didn't Contain Categorical Indication Of Furnishing Inaccurate Particulars Or Concealment Of Particular Income: ITAT Quashes Penalty Proceedings

Live Law  

The Delhi Bench of the Income Tax Appellate Tribunal has quashed the penalty proceedings as the notice issued to the assessee did not mentioned a categorical indication of specific violation in respect of furnishing inaccurate particulars or concealment of particular income. Therefore, the AO held it to be a case of concealment of the income and an assessee penalty was …

Underreporting Of Income Due To Re-Computation Of Disallowance By The AO, Does Not Amount To Misreporting Of Income: Delhi High Court
2 years, 9 months ago

Underreporting Of Income Due To Re-Computation Of Disallowance By The AO, Does Not Amount To Misreporting Of Income: Delhi High Court

Live Law  

The Delhi High Court has ruled that where the underreporting of income allegedly done by the assessee is due to the re-computation of the disallowance under Section 14A of the Income Tax Act, 1961 by the Assessing Officer, it would not amount to misreporting of income. The revenue department levied a penalty on the assessee Prem Brothers Infrastructure LLP under …

Assessee Not Immune From Penalty U/S 270AA Income Tax Act Where Proceedings Initiated For Misreporting Of Income: Delhi High Court
2 years, 10 months ago

Assessee Not Immune From Penalty U/S 270AA Income Tax Act Where Proceedings Initiated For Misreporting Of Income: Delhi High Court

Live Law  

The Delhi High Court has observed that it is only in cases where proceedings for levy of penalty have been initiated on account of alleged "misreporting of income" that an assessee is prohibited from applying and availing the benefit of immunity from penalty and prosecution under Section 270AA of the Income Tax Act, 1961.A division bench comprising of Justice Manmohan …

Discover Related