Failure to clarify ground on which penalty levied: Delhi HC dismisses Departmental appeal without question of law [Read Order]
Delhi HC – penalty was levied – appeal without question of law – high court news – taxscan
Delhi HC – penalty was levied – appeal without question of law – high court news – taxscan
In a recent case, the Delhi High Court quashed an appeal filed for the levy of a penalty under Section 271(1)(c) of the Income Tax Act, 1961, due to a failure to clarify the ground on which the penalty was levied.
The appeal was filed by the Principal Commissioner of Income Tax against the order of the Income Tax Appellate Tribunal (ITAT) in the case of assessee Gopal Kumar Goyal. The issue before the Tribunal was whether the penalty under Section 271(1)(c) of the Income-Tax Act, 1961, had been correctly imposed.
During the proceedings, the court observed that the Assessing Officer (AO) had not indicated, with clarity, the ground on which the penalty had been levied, i.e., on account of concealment of income or furnishing inaccurate particulars.
According to the Tribunal, this issue had already been covered against the appellant/revenue in several judgments. The tribunal dismissed the appeal and stated that the case of Pr. Commissioner of Income Tax v. Gopal Kumar Goyal, concerning the same Assessment Year (AY) 2004-05, came up for adjudication before this court.
After analyzing the facts and arguments of both parties, a division bench of Justice Rajiv Shakdher and Justice Girish Kathpalia held that the said appeal preferred by the appellant/revenue was closed with a detailed order, concluding that no substantial question of law arose for consideration.
To Read the full text of the Order CLICK HERE
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