Penalty Leviability of Penalty Under Section 271(1)(c) VisaVis Disclosure in Return Filed in Response to Section 148 Notice

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The Tax Publishers Income Tax--Penalty Leviability of Penalty Under Section 271(1)(c) Vis-a-Vis Disclosure in Return Filed in Response to Section 148 Notice CS. Ayush Rathi This article analyzes this issue in the context of the recent case of Ajoy Sharma v. DCIT and provides clarity on the interplay between these provisions. 1. Introduction Section 271(1)(c) of the Income-tax Act, 1961 as relevant upto assessment year 2016-17 dealt with the imposition of penalties for concealing particulars of income or furnishing inaccurate particulars. This provision was triggered when assessees fail to disclose accurate income or make wrongful claims in their returns, leading to tax evasion. A question may arise as regards to applicability of section 271(1)(c). If assessee rectifies errors by filing a return in response to a notice under section 148. 2. Background : Section 271(1)(c) and section 148 SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Penalty

Leviability of Penalty Under Section 271(1)(c) Vis-a-Vis Disclosure in Return Filed in Response to Section 148 Notice

CS. Ayush Rathi

This article analyzes this issue in the context of the recent case of Ajoy Sharma v. DCIT and provides clarity on the interplay between these provisions.

1. Introduction

Section 271(1)(c) of the Income-tax Act, 1961 as relevant upto assessment year 2016-17 dealt with the imposition of penalties for concealing particulars of income or furnishing inaccurate particulars. This provision was triggered when assessees fail to disclose accurate income or make wrongful claims in their returns, leading to tax evasion. A question may arise as regards to applicability of section 271(1)(c). If assessee rectifies errors by filing a return in response to a notice under section 148.

2. Background : Section 271(1)(c) and section 148