271(1)(c)

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avrandco (Querist)
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06 April 2018 271(1)(C) is applicable for non maintenance of books of accounts for non acceptance by Assessing Officer for source of income

Nikhil Kaushik

Nikhil Kaushik (Expert)
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06 April 2018 is it a question????

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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06 April 2018 Section 271(1)(c) empower to Income Tax Authority to levy penalty under the Act, if the assessee officer or commissioner appeal or the principal commission during the any proceeding is satisfied that assessee has concealed the particulars of his income or furnished inaccurate particulars of income, he may direct to Assessee shall pay by way of penalty ,sum which shall not be less than but which shall not exceed three times amount of tax sought to be evaded by reason of the concealment of particulars of income or furnished inaccurate particulars of Income. In other words, Income tax authority may levy penalty, if any of the following conditions has satisfied.

1. Assessee has concealed the particulars of his Income.
2. Assessee has furnished inaccurate particulars of income.

No penalty can be impost u/s 271 (1) (c) of the act on the preponderance of probability that the claim of expenditure was concealment the particulars of his income or furnished inaccurate particulars of income. Therefore It was held that merely making a claim, which is not sustainable in law, by itself, will not amount to furnishing of inaccurate particulars regarding the income of the assessee.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 April 2018 All type of concealment or incorrect furnishing of particulars doesn't attract attract
penalty. It is a matter of judgement based on the facts of each case.

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