Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 1075 - HC - Income TaxPenalty u/s 271B of the Act – Audit of accounts as per section 44AB of the Act – Mandatory requirement to obtain approval - Held that:- The order imposing penalty does not disclose that prior approval of the Joint Commissioner was obtained in either of the two cases – Relying upon Indrajit Banerjee Vs. Commissioner of Wealth Tax, Kolkata & Anr. [2014 (1) TMI 415 - CALCUTTA HIGH COURT] - It was the obligation of the Income Tax Officer to indicate in his order that he passed the order after obtaining requisite approval - Since the order passed by the Income Tax Officer does not contain the requisite recital, it has to be held that no such approval was obtained - The order itself is incompetent - An incompetent order is a nullity and the point as regards nullity can be taken at any stage – the order of penalty cannot be sustained – thus, the order set aside and the matter remitted back to the AO for passing an order under Section 271B after obtaining necessary approval – Decided in favour of Assessee.
|