Achal Garg – 02Dhiraj Gaur -15

Gaurav Grewal -18Nazish – 27

Sunny Bhat -54

Procedure◦ Before levying any penalty, assessee must be

heard or reasonable opportunity must be given to him to be heard

◦ Joint Commissioner’s approval must be taken if Income Tax Officer imposes penalty of Rs 10,000 or Assistant of Deputy commissioner imposes penalty of Rs 20,000

◦ Income Tax officer will send a copy of the penalty to the Assessing officer if both are not the same person

Quantum of Penalty◦ If the authority decides to impose penalty, it

cannot be less than the prescribed minimum, quantum shall be as per date of default

Discretionary Power◦ If the penalty to be imposed is a matter of

discretion of the authority, it should be exercised with reason (not arbitrarily) and after considering relevant circumstances of the case

Penalty maybe imposed under more than one section at a time

Failure to file return, not furnishing the return in specified period or not disclosing full income in case of search [158 BFA(2)]◦ Mini 100% , Max 300% of tax sought to be evaded

Penalty on tax in default [221(1)]◦ Not exceeding ax in arrears

Failure to comply with notices (to get accounts audited, to produce documents, produce evidence) [271(1)(b)]◦ Rs 10,000

Concealment or inaccurate particulars of income [271(1)(c)]◦ Mini 100% , Max 300% of tax sought to be evaded

Wrong distribution of profits of registered firm [271(4)]◦ Upto 150% of Tax sought to be evaded

Failure to maintain or retain accounts, documents [271A]◦ Rs 25,000

Penalty where search has been initiated on or after 1-jun-2007 [271AAA]◦ 10% of undisclosed income

Failure to get accounts audited [271B]◦ .5% of turnover, sales, gross receipts etc or Rs 1 Lakh

whichever is less

Failure to deduct tax at source [271C]◦ Equal to tax not deducted

Penalty for failure to collect tax at source [271CA]◦ Equal to tax not collected

Failure to take or accept loan/deposit (greater than Rs 20,000) by cheque or draft [271D]◦ Equal to amount of deposit of loan

Failure to repay loan/deposit (greater than Rs 20,000) by cheque or draft [271E]◦ Equal to amount of deposit or loan so re-paid

Failure to furnish return of income [271F]◦ Rs 5,000

Failure to file return of fringe benefits [271FB]◦ Rs 100 per day of default

Failure to answer questions, sign statements, allow inspection [272A(1)]◦ Rs 10,000 for each default

Failure regarding tax deduction and tax collection account number [272B]◦ Rs 10,000

Failure to furnish annual information return for special transactions(u/s 285BA) [272BB]◦ Rs 100 per day of default

In case of concealment of income◦ Person has made full and true disclosure prior to

the detection of the Assessing Officer◦ Person has cooperated with department in any

inquiry◦ Has paid or made satisfactory arrangements for

payment of tax or interest payable Reduction or waiver benefits can once taken

cannot be received in any other year in future

If concealed income is greater than 5 lakh or penalty exceeds 1 lakh permission of Chief Commissioner is required

Commissioner must record the reasons for waiver

Every order made by the commissioner regarding waivers is final and shall not be called into question by any court

A person cannot be prosecuted in relation to assessment of assessment year in which penalty has been waived by chief commissioner

Contravention of order u/s 132(3), not to remove books of accounts, money, jewellery etc without permission of authorized officer [275A]◦ Fine and imprisonment upto 2 years

Failure to provide officer necessary facilities to inspect accounts or documents [275B]◦ Fine and imprisonment upto 2 years

Removal, concealment, transfer or delivery of property to thwart tax recovery [276]◦ Fine and imprisonment upto 2 years

Transfer of property greater than 5 lakh without complying with provisions [276AB]◦ Fine and imprisonment of 3 months to 7 years

Failure to pay the tax deducted at source [276B]◦ Fine and imprisonment of 3 months to 7 years

Failure to pay the tax collected at source [276BB]◦ Fine and imprisonment of 3 months to 7 years

Willful attempt to evade tax(false book entries, omission of entries etc) [276C]◦ For amount > 1 lakh , fine and imprisonment of 6 months

to 7 years, in other cases 3 months to 3 years

Failure to furnish return of income in search cases [276CC]◦ If tax evaded > 1 lakh , fine and imprisonment of 6

months to 7 years, in other cases 3 months to 3 years Failure to furnish return of income [276CCC]

◦ Fine and imprisonment of 3 months to 3 years Failure to produce accounts and documents [276D]

◦ Rs 4 to 10 per day and imprisonment of upto 1 year False statement in verification [277]

◦ If tax evaded > 1 lakh , fine and imprisonment of 6 months to 7 years, in other cases 3 months to 3 years

Abetment of false returns [278]◦ If tax evaded > 1 lakh , fine and imprisonment of 6

months to 7 years, in other cases 3 months to 3 years

Upon liquidation of company, failure to give notice to assessing officer in 30 days, set aside money for tax liabilities or parting with assets of company in contravention on Sec 178(3) [276A]◦ Imprisonment of 6 months to 2 years

Punishment for second and subsequent offences in section 276B,276C,276CC,277 or 278◦ Fine and imprisonment of 6 months to 2 years

Disclosure of particulars by public servants [280(1)]◦ Fine and imprisonment of 6 months

Offences by companies [278B]◦ Liability will be of Managing Director of any such officer who has

willfully committed the offense Offences by Hindu undivided families [278C]

◦ Liability will be of Karta of any such member who has willfully committed the offense

If any prosecution of offence requires a culpable mental state on the accused, court presumes the existence of the mental state

Accused has to prove that he was in no such mental state if defense has to be taken on this ground

Culpable mental state includes intention, motive or knowledge of fact or belief in or reason to believe, a fact.

Offences under section 276B, 276C,276CC,277 an 278 are deemed to be non-cognizable

A police officer has not authority to arrest a person without warrant