Penalty u/s 271(1)(c)

This discussion explores whether a penalty under Section 271(1)(c) of the Income Tax Act can be levied when correct income was reported in response to a notice, even if the original return was inaccurate. While advance tax payment is considered, the final decision rests with the Assessing Officer, who must exercise due diligence and consider judicial precedents. Assessees have the right to appeal if the penalty imposition is not in line with legal pronouncements.