Income Tax Penalties, 2021

The book aims at analysing all provisions relating to penalties under the Income Tax Act. The Finance Act, 2016 had made significant changes in penalty related Provisions and the most popular and frequently imposable penalty under section 271(1)(c) for concealment and furnishing of inaccurate particulars of income was replaced by penalty for underreporting and mis-reporting of income. Two new sections 270A and 270AA were inserted in the Income Tax Act. Though the words “underreporting” and “mis-reporting” for the purpose of section 270A have been specifically defined, however a new chain of litigation cannot be avoided owing to different interpretations under varied fact situations. In this book the new provisions contained in section 270A are discussed with the help of practical instances and illustrative case law with a view to unfold the new law. The penalty under erstwhile section 271(1)(c) for concealment of income and furnishing of inaccurate particulars of income has also been discussed in the book in quite detail for two reasons — (i) Some of the cases applicable to section 271(1)(c) which may be pending in the courts may go to help in contesting a case relating to misreporting or underreporting of income under Section 270A. (ii) The principles emerging from various case law relating to section 271(1)(c) may be helpful in interpretation of current provisions as well. Some penal provisions are in the form of levy of fee, i.e., sections 234E, 234F, 234G and 234H. The fee under these sections is levied for default in furnishing of TDS return, income-tax return and for certain statement or certificates respectively. These provisions are also discussed in the book. The CBDT has recently notified the Faceless Penalty Scheme Under which all penalty proceedings will be carried out without any human interface + notices and replies shall be issued and submitted digitally. This book contains a separate part dealing with proceedings under Faceless Penalty Scheme too.