271(1)(c)
This query is : Resolved
28 December 2011
Whether penalty u/s. 271(1)(c) can be levied on lump sum disallowance of expenditure?
28 December 2011
Yes if assessee is at question of fact by showing excessive exps and thus supressing the income, 271(1)(c) can definately be invoked.
28 December 2011
Assessing officer can impose penalty on this but is there any counter argument or any case laws in favour of assessee?
28 December 2011
Normally Section 271(1)(c) will not be invoked the AO for each and every expenditure dis-allowed. It should be established that the assessee has claimed expenditure with an intent to evade the tax. So, the concept of "mens era" need to be established to attract this section. Merely the proof the exp. is not submitted like bills etc., the above section cannot be invoked.
Message likes :
1 times
28 December 2011
Disallowance of an expenditure per se cannot mean that the assessee has furnished inaccurate particulars of its income,hence penalty u/s 271(1)(c) will not sustain.
Citation :- CIT V Ajaib Singh & Co (2002) 253 ITR 630 (P&H).
Citation :- CIT V Ajaib Singh & Co (2002) 253 ITR 630 (P&H).
Message likes :
1 times
29 December 2011
Hi All,
I clerified before that if at all the diallowance of expense and hence supression of income is Question of Fact and thatis established by Authority, then only sec 271(1)(c) can be invoked.
Mere disallowance of expense does not attract the same.
I clerified before that if at all the diallowance of expense and hence supression of income is Question of Fact and thatis established by Authority, then only sec 271(1)(c) can be invoked.
Mere disallowance of expense does not attract the same.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Treatment of Pension ?annuity returns on PMVY
- Free lancer income
- LTCG for Assmt year 26-27
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Last year TDS Claim
- Loan by Partnership Firm
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
