Preface

The Finance Act, 2016 has introduced a new regime whereby penalty hitherto leviable under section 271(1)(c) for concealment and furnishing of inaccurate particulars of income gets replaced by penalty for underreporting and mis-reporting of income. For this purpose two new sections 270A and 270AA have been inserted in the Income Tax Act with effect from assessment year 2017-18 and simultaneously a sunset clause has been inserted in section 271 in order to make it inoperative w.e.f. the same assessment year 2017-18. The basic objective of such a radical change is to rationalise and bring objectivity, certainty and clarity in the penalty provision and thereby reduce litigation. Under the new law, the main ingredients for imposing penalty are underreporting and misreporting of income. The words underreporting and mis-reporting despite being specifically defined, would create a new chain of litigation owing to different interpretations under varied fact situations. The present book, the firstever on the subject, aims at analysing the new penalty scheme with the help of practical instances and illustrative case law which appear to be helpful in interpretation of the new law.

The subject matter of the book is divided in six parts as under, comprising 35 Chapters :

A sort of logical and systematic classification of the subject-matter envisaged by us would help in providing easy grasp and appreciation of the new penalty regime. As section 271(1)(c) would continue to be governing the penalty proceedings for the assessments done for assessment years prior to assessment year 2017-18, hence it is thought proper to discuss that as well in a separate Part V, titled, Concealment Penalty Under Section 271(1)(c) Vis-a-Vis Penalty Under Section 270A--Tracing Common Grounds which aims to be meant for dual purpose.

We have made a sincere effort at interpreting the new scheme in the light of the earlier one to the extent necessary and relevant, with the view to unfold the current concept of penalty for underreporting and misreporting of income. Still certain areas of conflicts would soon begin emerging and only with passage of time the new law would get settled.

We hope that our present attempt would be useful for taxpayers as well as for professionals and the tax administrators. Though we have tried to make it an error free and quality publication, however we shall remain grateful for any valuable and constructive suggestions from our esteemed readers.

JODHPUR	-- Authors
10th June 2016