Penalties and Prosecutions

Here’s a detailed analysis of Section 273A of the Income Tax Act, 1961, which empowers tax authorities to reduce or waive penalties in specific cases to promote voluntary compliance and reduce litigation: 1. Overview of Section 273A Section 273A grants discretionary powers to the Principal Commissioner/Commissioner of Income Tax to: Waive or reduce penaltiesfor under-reporting/misreporting (Section 270A) or concealment […]

Section 273AA of the Income Tax Act, 1961, empowers the Principal Commissioner or Commissioner to grant immunity from penalties in specific cases, particularly where settlement proceedings before the Income Tax Settlement Commission (ITSC) have abated. Below is a detailed breakdown of its provisions, conditions, and procedural aspects: 1. Eligibility for Immunity [Section 273AA(1)] A taxpayer can apply

Here’s a detailed analysis of Section 273B of the Income Tax Act, 1961, which provides immunity from penalties in cases where the taxpayer demonstrates “reasonable cause” for non-compliance: 1. Overview of Section 273B Section 273B states that no penalty shall be imposed for failures under specified provisions (e.g., Sections 271A, 271B, 271C, 271D, 271E, 271F, 271H, etc.) if the

Here’s a detailed explanation of the Procedure for Imposing Penalty under Section 274 of the Income Tax Act, 1961, synthesized from the search results: 1. Mandatory Hearing Requirement [Section 274(1)] Natural Justice Principle: No penalty order can be passed unless the assessee is given a reasonable opportunity to be heard(e.g., via show-cause notice). Judicial Precedents: Penalty notices must specify

Here’s a detailed analysis of Section 275 of the Income Tax Act, 1961, which governs the time limits for imposing penalties, incorporating recent amendments proposed in the Finance Bill, 2025: 1. Overview of Section 275 Section 275 imposes a statutory time limit for passing penalty orders under Chapter XXI of the Income Tax Act, ensuring timely resolution and preventing indefinite

Here’s a detailed analysis of Section 278AB of the Income Tax Act, 1961, which empowers the Principal Commissioner or Commissioner to grant immunity from prosecution in specific cases: 1. Overview of Section 278AB Section 278AB provides a discretionary power to the Principal Commissioner/Commissioner to grant immunity from prosecution when: A taxpayer’s settlement application under Section 245Cabates (terminates) under Section 245HA due to