| Case ID |
00f47843-2234-4698-b4a8-f80956a0b626 |
| Body |
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| Case Number |
G.A. NOS. 304, 306 AND 307 OF 2004 AND A.W.T. NOS. |
| Decision Date |
Mar 11, 2004 |
| Hearing Date |
|
| Decision |
The High Court ruled that stay cannot be granted against penalty proceedings that do not arise from the Tribunal's order against which appeals are pending. The court emphasized that penalty proceedings are distinct from regular proceedings under the Wealth-tax Act. The applications for stay were dismissed as not maintainable since they did not pertain to the Tribunal's order. The judgment clarified that the appeals pending were limited to determining specific questions of law arising from the Tribunal's decision, and thus, the penalty proceedings were not subject to stay. The court's decision articulated that the applicant retains the right to pursue further legal options regarding the penalty proceedings. |
| Summary |
In the case of Bhabi Properties (P.) Ltd. v. Deputy Commissioner of Income Tax, the Calcutta High Court addressed the issue of whether a stay could be granted on penalty proceedings initiated under the Wealth-tax Act, 1957. The court highlighted that the penalty proceedings, which were distinct from regular proceedings, could not be stayed simply because appeals were pending concerning questions of law arising from the Tribunal's orders. The judgment underscored the separation of penalty proceedings from regular assessment processes, asserting that the scope of the pending appeals was limited to specific legal questions. This case is significant for taxpayers and legal practitioners as it clarifies the procedural boundaries regarding penalty proceedings and the implications of pending appeals. Key concerns around compliance, penalty assessments, and the legal avenues available for taxpayers are central to this case, making it a noteworthy reference for understanding the Wealth-tax Act's enforcement mechanisms. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
M.H.S. Ansari,
Soumitra Pal
|
| Lawyers |
Mr. Majumdar
|
| Petitioners |
Bhabi Properties (P.) Ltd.
|
| Respondents |
Deputy Commissioner of Income Tax
|
| Citations |
2004 SLD 1360 = (2004) 267 ITR 593
|
| Other Citations |
Cement Marketing Co. of India Ltd. v. Asstt. CST [1980] 124 ITR 15,
Jaswant Rai v. CBDT [1998] 231 ITR 745,
J.K. Synthetics Ltd. v. CTO [1994] 4 SCC 276
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
18,
27(A)
|