Section 271(1)(c) (now Section 270A) ITA 1961 imposes PENALTY for:
Answer & Solution
Correct answer: A.
1. Section 271(1)(c) Income Tax Act 1961 (PRE-AY 2017-18): penalty for CONCEALMENT of income or furnishing INACCURATE PARTICULARS:
2. (i) MINIMUM 100% to MAXIMUM 300% of tax sought to be evaded.
3. Section 270A (effective AY 2017-18 onwards): SUBSTITUTED Section 271(1)(c) with a more graded regime:
4. (a) UNDER-REPORTING of income (Sec 270A(7)): penalty 50% of tax;
5. (b) MIS-REPORTING of income (Sec 270A(8)): penalty 200% of tax.
6. Section 270AA provides for IMMUNITY in certain conditions.
7. The regime aims to reduce litigation and provide proportionate penalty.
8. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 271(1)(c) / Section 270A (substituted)_
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