Penalty levied u/ss 271(1)(c) and 271AAA for unexplained ...

Penalty on unexplained income: Differing estimates by authorities, no concealment.

Case Laws Income Tax

October 11, 2024

Penalty levied u/ss 271(1)(c) and 271AAA for unexplained investment and addition made by adopting net profit as per the books of accounts at 12.85% on the suppressed sales. The key points are: The addition was modified from gross profit basis to net profit basis by the CIT(A) and further restricted to 1% of turnover by the ITAT. Different authorities adopted varying estimates for determining the assessee's income, ranging from GP/NP on alleged suppressed turnover to 1% net profit on declared turnover. The addition towards undisclosed investments was deleted. The High Court confirmed the ITAT's order. In such cases of differing estimates, penalty cannot be levied for concealment or furnishing inaccurate particulars. The jurisdictional High Court's judgment in CIT vs. Valimkbhai H. Patel supported this view. Penalty under 271(1)(c) was deleted. For 271AAA, no penalty can be imposed on the remaining 1% net profit addition on declared turnover in the absence of identified assets representing undisclosed income.

View Source

← Previous Next →

Penalty levied u/ss 271(1)(c) and 271AAA for unexplained ...

Penalty on unexplained income: Differing estimates by authorities, no concealment.

Case Laws Income Tax

October 11, 2024

You may also like:

The crux pertains to levying penalty u/s 271(1)(c) for alleged furnishing of inaccurate particulars or concealment of income regarding capital gains computation on sale...

The ITAT Mumbai ruled on penalty u/s 271(1)(c) for estimation of income on bogus purchases. The tribunal held that penalty cannot be levied on additions made on an...

Penalty proceedings u/s 271(1)(c) involved an addition based on estimation by the Assessing Officer, which was later re-estimated by the CIT(A) to disallow 10% of the...

Penalty u/s 271(l)(c) - it is a case where the hypothesis of there being a concealment of income and there not being concealment of income are equal - no penalty - AT

Penalty for concealment of income Under Section 271(1) (c) - Article

Penalty levied u/s. 271(1)(c) - estimated rate of profit applied on the turnover of the assessee - in the case on hand the Assessing Officer has only estimated the Gross...

Levy of Penalty u/s. 271(1)(c) - The ITAT ruled that since there was no variation between the returned and assessed income, there was no concealment of income by the...

The Income Tax Appellate Tribunal (ITAT) held that no penalty u/s 271(1)(c) can be imposed for an ad-hoc disallowance of 20% of expenses made by the Assessing Officer....

Levy of penalty u/s 271 (1) (c) on "estimated income” by the assessing authority - The discussion is concluded by holding that the penalty is determined on the amount of...

Unexplained investments u/s 69- Tribunal deleted the addition - The term assessed being flexible, it bears very comprehensive meaning. Therefore, under Section 158BB of...

The Appellate Tribunal addressed the issue of penalty u/s 271(1)(c) concerning the correct classification of income. The Assessing Officer treated the income as 'income...

Penalty u/s 271(1)(c) - Penalty order did not specify the particular limb under which penalty u/s 271(1)(c) is levied. AO has not specified that penalty is either levied...

Voluntary surrender of income by assessee cannot be considered concealment. AO failed to prove concealment, merely concluded voluntary surrender as concealment....

Penalty u/s 271(1)(c) - recording of satisfaction - penalty initiated u/s 143(3) order for concealment of particulars of income - penalty imposed for furnishing of...

In the case of 2024 (5) TMI 1132 before the ITAT Mumbai, the issue pertained to penalty proceedings u/s. 271(1)(c) concerning the estimation of income on bogus purchases....

Quick Updates: