Penalty under s 271(1)(c)

 

Once the declaration made in the return of income itself is found to be incorrect, it would amount to furnishing inaccurate particulars of income for the purpose of s 271(1)(c), as held by MumHC in Harish P Mashruwala v ACIT — In favour of: The revenue.

No penalty can be imposed under s 271(1)(c) in the absence of any finding by the AO that the assessee had furnished inaccurate particulars and also that the explanation given by the assessee was not bona fide, as held by DelHC in CIT-Large Tax Payers Unit, New Delhi v Mahanagar Telephone Nigam Ltd — In favour of: The assessee.

Decided on: 10 October 2011.