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Vinod maheshwari (Advocate)     23 March 2022

Income tax returns

Income Tax return not filed U/s 139(1) but after notice U/s 153A Return filed within time. whther penalty U/s 271F can be imposed after filling Return U/s 153A ?


 4 Replies

Harendra Kumar (A Practicing Lawyer)     10 May 2022

If your Income is exempt or below of tax limit you can be contect the same. However, you should be depositted the same in term of penalty. It is penalty related to not complied the Return of Income within presecribed time limit. 





Vignesh R   30 June 2022

The Income Tax Act of 1961, Section 153 A, establishes a system for determining income in the case of a person who has been searched. The aforementioned item states that the Assessing Officer has the power to formulate a person's evaluation for the six assessment years immediately prior to the year of search. It is clear that the assessee had a valid reason for failing to file a return pursuant to Section 139(1) of the Act, for which the penalty has been assessed and confirmed pursuant to Section 271F of the Act, when we take into account all of the relevant facts and circumstances prevailing in this case.

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LCI Thought Leader Adv. Ravish Bhatt, ADIT, CIOT (Dual Qualified lawyer/ Solicitor International Tax Affiliate CIOT)     15 July 2022

S.153 notice for assessment is issued only in case of search and seizure operation conducted u/s.132 of the Income Tax Act, 1961.  Such assessment happens in respect of income of six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted and also for assessment year relevant to previous year in which search comes to be conducted.

S.271F is a penalty provision for not furnishing return in time as required u/s.139(1) of the Act.  If return is not furnished originally in line with 139(1) of the Act, furnishing the return pursuant to s.153A notice could still invite penalty u/s.271F of the Act.  However, one should be mindful of the proviso to s.271F that says that nothing contained in said section shall apply to return of income required to be furnished for any assessment year commencing after 1st April, 2018.

Also, in case of assessment u/s.153A r/w. s.143, for additionally assessed income, a penalty could be levied u/s.271(1)(c) of the Act for assessee having concealed the particulars of income or having furnished inaccurate particulars of income.   Such penalty could be between 100% to 300% of tax sought to be evaded.   However, it must be noted that if not return of income originally is filed (i.e. income of INR 0) and if the return of income is filed pursuant to s.153A showing income of say INR 1000000 with payment of taxes of roughly 125 lacs and if department accepts the same, no penalty could be levied for concealment of income originally by way of not filing return in terms of s.139.  If department makes any addition beyond the return furnished, the penalty could be levied only on additional tax demand raised i.e. owing to difference of tax liability in terms of return filed u/s.153A and the income assessed by department u/s.153A r/w s.143(3) of the Act.  

Furthermore, any such penalty could be levied only on count of furnishing inaccurate particulars or concealment of particulars and not for any wrong claims made owing to erroneous understanding or interpretation of a provision.

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