The ITAT held that penalty u/s 271(1)(c) was not imposable on ...

No Penalty for Voluntary Tax Payment on Share Sale Income.

December 27, 2024

Case Laws Income Tax AT

The ITAT held that penalty u/s 271(1)(c) was not imposable on the assessee. The assessee had voluntarily paid tax on income from sale of shares three years prior to initiation of reassessment proceedings, establishing bona fides under Explanation 1(B) to Section 271(1)(c). Alternatively, since the income was included in the return filed in compliance with notice u/s 148 and accepted by the AO without any addition/disallowance, no penalty could be imposed in absence of any amount added/disallowed to attract the deeming provisions of Explanations 1 and 4 to Section 271(1)(c). The ITAT relied on precedents holding that penalty u/s 271(1)(c) cannot be imposed where the income is voluntarily disclosed in the return and accepted by the AO without any concealment.

View Source

← Previous Next →

The ITAT held that penalty u/s 271(1)(c) was not imposable on ...

No Penalty for Voluntary Tax Payment on Share Sale Income.

December 27, 2024

Case Laws Income Tax AT

You may also like:

Penalty levied u/s 274 read with Section 270A - assessee computed tax on disallowed depreciation amount at maximum marginal rate and levied 200% penalty on payable tax -...

Gain on sale of shares - accommodation entry or not - the income in question is a bonafide Long Term Capital Gain arising from the sale of shares and hence exempt from income tax

Sale of shares - Capital Gains or business income - it will not be appropriate to assess the income declared by the assessee from sale and purchase of shares as business...

Correct head of income - treatment of income from sale and purchase of shares - business income or income from capital gains - high volume of transactions and frequently...

The Tribunal upheld the penalty imposed u/ss 271(1)(c) and 271AAB of the Income Tax Act for additional income brought to tax owing to a search and seizure action. The...

Nature of income - profit earn on sale of shares - STCG or Business Income - in the earlier assessment years the assessee had consistently shown the receipts of sale of...

Imposition of penalty u/s 271(1)(c) of the Income Tax Act for two types of additions: (1) the addition made u/s 50C on the difference between stamp duty value and sale...

Profit earned on sale of shares - frequency and volume of purchase and sale of shares shows, intention of assessee was to generate income through trade, rather than...

Penalty order u/s 271AAB for treating an amount included in the Return of Income as 'undisclosed income' was found unjustified. The Commissioner of Income Tax (Appeals)...

Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

Offence u/s 276(C)(2) and 277 - Allegation of willful tax evasion and non-payment of admitted tax - compounding application. The petitioner submitted income tax return...

Payment of Interest for Sales Tax Default - interest paid by the assessee to the sales tax department on arrears of sales tax/purchase tax was an admissible deduction - AT

Correct head of income - sale consideration received by the assessee from redemption of preference shares including the premium- capital income or income from other...

The Income Tax Appellate Tribunal (ITAT) allowed the assessee's appeal and directed the penalty u/s 271(1)(c) of the Income Tax Act to be deleted. The Assessing Officer...

Income derived from the sale of equity shares - business income or Long Term Capital Gain - the said equity shares not only for one year but for more than 16 years and...

Quick Updates: