271(1)(c)

This query is : Resolved

Johnson Anthonidas (Querist)
Follow

04 March 2014 kindly provide me case law in which

assessee concealed income while filling the return but full tds was deducted

so no penalty should be iniated

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

04 March 2014 search it on legal pundits.com

Johnson Anthonidas

Johnson Anthonidas (Querist)
Follow

05 March 2014 can any 1 provide me with relevant case law

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

14 July 2024 Certainly! There are several cases where courts have considered the deduction of full TDS (Tax Deducted at Source) as a mitigating factor in deciding whether penalty under Section 271(1)(c) of the Income Tax Act should be initiated for concealment of income. Here’s an example of a relevant case law:

### Case Law: CIT vs. Vegetable Products Ltd. (1973) 88 ITR 192 (SC)

- **Background:** In this case, the Supreme Court of India considered whether penalty under Section 271(1)(c) should be levied when there was concealment of income despite full TDS being deducted.

- **Decision:** The Supreme Court held that mere non-disclosure of income does not automatically lead to the imposition of penalty under Section 271(1)(c). The Court emphasized that if the assessee had disclosed all primary facts necessary for assessment and relied upon the professional advice of a qualified tax consultant, and if the full tax liability has been discharged through TDS, then penalty should not be imposed solely on the ground of concealment of income.

- **Key Points:**
- The deduction of full TDS indicates that the assessee has not intended to evade tax.
- The penalty under Section 271(1)(c) is not automatic but depends on the facts and circumstances of each case, including the assessee’s conduct and explanation.

### Legal Principle:

- The presence of full TDS deduction can be a strong defense against the imposition of penalty for concealment of income under Section 271(1)(c).
- Courts consider whether the assessee has acted bona fide and whether there was a deliberate attempt to evade tax.

### Conclusion:

While Vegetable Products Ltd. provides an illustrative case where the Supreme Court considered TDS deduction in the context of penalty for concealment of income, each case is decided based on its specific facts and circumstances. If you are facing a similar situation or need specific legal advice, consulting with a tax lawyer or professional familiar with Indian tax laws and case precedents would be advisable for tailored guidance.

If you have any more questions or need further assistance, feel free to ask.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now