| Case ID |
09946285-1a07-49cc-81f6-e983d1a6db66 |
| Body |
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| Case Number |
Income-tax Reference No.175 of 1980 |
| Decision Date |
May 03, 1989 |
| Hearing Date |
|
| Decision |
The Tribunal held that the imposition of penalty on the assessee was not justified. The Income-tax Officer had disbelieved the explanation provided by the assessee without any substantial evidence to prove concealment of income. The Tribunal found that all the creditors had confirmed advancing loans to the assessee and had responded to the summons issued under section 131 of the Income-tax Act. The Tribunal also upheld the allowance of interest payments on those loans. Thus, the penalty provision under section 271(1)(c) was deemed inapplicable, and the order of penalty was rightly canceled. |
| Summary |
In the case of Commissioner of Income Tax vs. Shree Bajrang Trading and Supply Company, the Calcutta High Court addressed the issue of imposition of penalty under the Income Tax Act, 1961. The case revolved around the assessment year 1964-65, where the Income-tax Officer treated cash credits as undisclosed income, doubting the genuineness of loans advanced to the assessee. The creditors had confirmed the loans during the proceedings, yet the Officer imposed a penalty for concealment of income. The Tribunal overturned this decision, stating that there was no material evidence to support the claim of concealment. This ruling emphasizes the importance of substantial evidence in tax assessments and penalties, ensuring fairness in the application of the Income Tax Act. The case highlights critical sections of the Act, including 131 and 271(1)(c), which are pivotal in tax law. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
AJIT K. SENGUPTA,
BHAGABATI PRASAD BANERJEE
|
| Lawyers |
Not available
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
SHREE BAJRANG TRADING AND SUPPLY COMPANY
|
| Citations |
1992 SLD 159,
1992 PTD 1045,
(1991) 187 ITR 299
|
| Other Citations |
CIT v. Anwar Ali (1970) 76 ITR 696 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
131,
271(1)(c)
|