Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2005 (9) TMI 658 - KARNATAKA HIGH COURT

2005 (9) TMI 658 - KARNATAKA HIGH COURT - TMI - I.T.R.C. NO. 523/1998. - Dated:- 5-9-2005 - MR H. L. DATTU AND MR H. N. NAGAMOHAN DAS, JJ. JUDGMENT The assessee is a firm. It had filed its return of income for the assessment year 1987-88 declaring a total income of ₹ 2, 85,150/-. The Assessing Authority had completed the assessment under Section 143(3) of the Income Tax Act ( the Act for short) on an income of ₹ 2,87,970/- 2. During an investigation in some other group cases, one Sri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ts borrowed by different persons. In reply to the notice so issued the assessee while denying the contents of the notice, offered a sum of ₹ 1,15,000/- for the purpose of taxation as firm s income with a view to buy peace from the department provided no penalty proceedings would be initiated and the penalty is levied. 3. After receiving the report of Assistant Director of Inspection, the Assessing Officer had initiated re-assessment proceedings by issuing a notice under Section 148 of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty would be levied. The Assessing Officer not being satisfied with the explanation offered, levied a penalty in a sum of ₹ 70,000/- under Section 271(1)(c) of the Act. This order was confirmed by the first Appellate Authority. In the further appeal filed by the assessee before the Income-tax Appellate Tribunal the Tribunal has allowed the appeal after giving the following finding at paragraph 5 of its order: 5 We have heard the parties and we have gone through the case record. We are of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

followed by a return showing the said amount as income and for all practical purposes the said return was accepted. We are, therefore, of the opinion that the department has failed to prove that the assessee had concealed the particulars of income and that penalty could be imposed on account of concealment. We are of the opinion that the decision of the CIT(A) is based on incorrect appreciation of facts. In his order in para 8 he has not mentioned the fact that Shri Vimal Kumar Aggarwal was not .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y the first Appellate Authority in conforming the order passed by the Assessing Officer in levying penalty under Section 271(1) (c) of the Act. 5. At the instance of the revenue, the Income Tax Appellate Tribunal has referred the following question of law for our consideration and opinion, It is as under; Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in canceling the penalty of ₹ 70,000/- imposed under Sec. 271 (1)(c) of the Income Tax Act, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on reached by the Tribunal is contrary to the law declared by the apex Court in the case of Union of India Vs. Banwari Lal Agarwal, 238 ITR 461. In the said decision, the Apex Court has observed as under; ……….. Learned counsel for the respondent is also unable to draw our attention to any provision of the Income-tax Act, whereby a compromise assessment could have been arrived at between the respondent and the Commissioner of Income-tax. The High Court, in our view, was clear .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version