Summary and Review of Case Laws Decided by Income Tax Appellate Tribunals
Wednesday, 29 July 2015 20:15

Penalty us 271(1)(c) deleted - Chennai ITAT Featured

Written by
  • font size decrease font size increase font size
  • Print
  • Email
Rate this item
(2 votes)


In this case assessee furnished all the relevant details about the donations received by the trust. However, offered for taxation to the extent details were not available. The honb. Court observed that the assessee had neither concealed the income nor furnished inaccurate particulars. Thus the penalty can not be levied.


  1. Assessee a Registered Trust u/s 12AA
  2. Income declared NIL in the return of income
  3. AO observed that the amount received as voluntary donations by way of cash not disclosed
  4. Assessed as undisclosed income of the trust and initiated penalty u/s 271(1)(c)
  5. CIT (A) confirmed the penalty
  6. Tribunal reversed the order and passed in favour of the assessee deleting the penalty u/s 271(1)(c).


In the present case, the assessee had explained before the Assessing Officer that the amounts received by it were voluntary donation and certain details were not available. Therefore, the extent of details not available were worked out by the assessee and offered for taxation. It was found that by explaining all the reasons, the assessee had discharged burden cast upon it. Thereafter, it was the duty of the AO to disprove that the explanation given by the assessee was neither correct nor bonafide. Therefore, the CIT(A) was not correct in upholding the penalty order passed by the AO without considering the explanation given by the assessee.

Cases Referred to

CIT vs. Chennupati Tyre & Rubber Products [2014] APHC
Mak Data P. Ltd., vs. Commissioner of Income Tax-II Civil Appeal No.9772 of 2013, dated 30.10.2013
National Textiles vs. CIT249 ITR 125
CIT vs. Balraj Sahani119 ITR 36

Additional Info

Read 16832 times Last modified on Saturday, 13 February 2016 17:06
Deepak Kumar

A Post Graduate and Chartered Accountant Deepak Sinha is a member of Taxpundit's core team. An analytical, result oriented professional with more than 10 years of combined experience in industry and consultancy.

This email address is being protected from spambots. You need JavaScript enabled to view it.


  • Comment Link pawan kumar jha Saturday, 12 January 2019 12:35 posted by pawan kumar jha

    MY client filled income tax return for A.y 11-12. the case opened u/s 147/143(3) of the act . accordingly notice u/s 148 was issued .in response to the notice Assessee filled a income tax return again by showing increased income.Now a order issued for concelament of income and levied penalty u/s 271(1)(c).please provide some case law to represent

  • Comment Link Amit Wednesday, 05 August 2015 15:45 posted by Amit

    Hi Priyanka..what is the status of the assessment order ? Have you accepted it or preferred appeal before the CIT(A) ?
    If it is still open, the best advise would be to appeal before the CIT because if the additions are deleted by the CIT the penalty u/s 271(1)(c) is normally dropped.
    If you have accepted the assessment order you will have to fight the penalty proceedings. All the best....

  • Comment Link Anil Wednesday, 05 August 2015 15:27 posted by Anil

    @ Priyanka
    If the penalty is initiated then you will to explain your stand before the AO. This will be a seperate proceedings similar to assessment proceedings and if the A.O. is convinced with your reply no order will be passed otherwise a seperate speaking order will be passed. You can appeal against the penalty order to the CIT(A).
    Whether the penalty is leviable in your case requires an independent analysis after reading assessment order. I would request you to analyse assessment order u/s 143(3) and also please search, read and examine various judicial orders available in this site. You can rely upon the judgement if the facts are similar to your case. If it is directly applicable to the facts of your case, please inform the assessing officer to follow the judgement and warn him that if he takes a view against the judgement it will amount to contempt of the court.
    You can take print out of the judgement and attach it with your penalty reply. The penalty simply can not be levied just because there are additions to the returned income. You will have to understand and explore every possibility that the additions does not warrant a penalty to be levied. For every addition there are case laws available in this site which are in favour of the assessee. Please do extensive search in our library.
    Please take an informed decision. If you need further opinion on your case we may require copy of the assessment order u/s 143(3). Please scan it and email to us on

  • Comment Link deepakkumar Tuesday, 04 August 2015 16:40 posted by deepakkumar

    @ Mr. Rabendra
    Sent on your email id...

  • Comment Link priyanka Saturday, 01 August 2015 14:16 posted by priyanka

    In this case the income was offerred for taxation by assessee itself. what are the options available to the assessee if the assessment is completed and penalty initiated.

  • Comment Link rabendra Saturday, 01 August 2015 14:08 posted by rabendra

    Pls send me recent judgmnts on 271(1)(c). I need it for CIT(a). A matter of my client is pending.

Leave a comment

Thank you for reading! We welcome and appreciate your comments, but at the same time, make sure you are adding something valuable to this article. If you have any serious queries, suggestions or anything related to this article, feel free to share them, we really appreciate that.

If you want to give us any feedback or report any errors, you can email your concerns on and we'll revert back soon.

Most Popular Case Summary

  • Default
  • Title
  • Date
  • Random
load more hold SHIFT key to load all load all

Recommended Articles


Have you done Analysis of any Case? Tell Us About It.


All content herein is the copyright of Taxpundit. No images, text, or any other content may be, reproduced or redistributed without the express written consent of Taxpundit.

All Rights Reserved. All Content Copyright.


Subscribe to our newsletter and stay updated on the latest developments and special offers!

Vivad Se Vishwas Scheme announced in Union Budget, 2020. Download Now
Toggle Bar