penalty u/s 271(1)(c)

[Guest]

if particular expenses rightly disallowed by the A.O. during the course of assessment  U/S 40a(ia) , would attract penalty provision U/s 271(1)(c)

AI Summary

Debate on Penalty for Disallowed Expenses Under Section 40a(ia) and Section 271(1)(c) of Income Tax Act A discussion forum post raises a query about whether expenses disallowed under Section 40a(ia) of the Income Tax Act would attract a penalty under Section 271(1)(c). The response indicates that the imposition of penalties depends on various factors such as the specific facts and circumstances of the case, the nature of the taxpayer, the type of mistake, and whether the mistake was repeated or occurred despite warnings. It is noted that in initial years, a lenient view is often taken due to widespread unawareness among small taxpayers and general tax practitioners.