Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 127 - HC - Income TaxRevision u/s 263 - Penalty u/s 271(1)(c) - Calling records(file u/s 263) - Penalty u/s 271(1)(c) on claiming sales tax subsidy as Capital receipt - The AO has levied penalty u/s 271(1)(c) on assessee's claim that sales tax subsidy should be treated as capital receipt, After the said order was passed, the Commissioner Income Tax passed an order U/s 263 of the Income Tax Act, 1961 whereby the penalty was quantified -Held that:- The Commissioner of Income Tax passed an order under Section 263 of the Income Tax Act, 1961 whereby the penalty was quantified for the reason that in the original order of the Assessing Officer, the same was omitted - Tribunal holding that once the penalty itself has been set aside by the Commissioner of Income Tax (Appeals), the provisions of Section 263 of the Act could not be invoked by the Revenue. We find that the Commissioner of Income Tax has exercised jurisdiction under Section 263 of the Act in utter violation of not only of judicial proprietary also against the provisions of law - Once the penalty proceedings have been set aside in appeal, the Commissioner of Income Tax could not impose penalty on the basis of an order, which has since been set aside by the Commissioner of Income Tax (Appeals) - In view of the said fact, we do not find that any question of law arises for consideration out of an order passed by the Tribunal - The appeal is dismissed in favour of Assessee.
|