Penalty u/s 271(1)(c)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2015 whether penalty can be levied by AO u/s 271(1((c) in the following cases

1. disallowance u/s 14A
2. disallowance u/s 2(24)(x) read with sec 36(1)(va)
3. disallowance u/s 40(a)(ia)

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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19 September 2015 Yes. If it is wilful and even otherwise.
They would treat it as 'concealment of income'.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 September 2015 Disallowance of expenditure per se will not amount to furnishing of inaccurate particulars meaning thereby penalty cannot be imposed.

Citation:- CIT Vs. Reliance Petroproducts P Ltd (2010) 322 ITR 158(SC).

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2015 Income tax department has been INSTRUCTED to levy penalty u/s 271(1)(c) adn come what may, every Assessing Officer is scrupulously following the same. (By default)

We need to contest this on the grounds
01. inaccurate particulars
02. wilful
03. cooperated during the course of proceedings