| Case ID |
10c45080-92f0-46f4-aaa7-2d4dbd2280b6 |
| Body |
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| Case Number |
IT REFERENCE No. 118 OF 1991 |
| Decision Date |
Jan 27, 2005 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal referred questions regarding the powers of the Commissioner of Income Tax to revise orders under section 263 of the Income-tax Act, 1961. The court held that the Tribunal was justified in stating that the Commissioner had no authority to revise the order under section 271(1)(c) after the penalty proceeding had been dropped. The court also affirmed that the penalty order resulting from the Commissioner’s order under section 263 was barred by limitation, as the penalty proceedings had been initiated in 1980 and dropped in 1984, well before the substituted provisions of section 275 took effect in 1989. This decision underscores the importance of adhering to statutory limitations and the procedural rights of the parties involved in tax proceedings. |
| Summary |
This case revolves around the interpretation of sections 263, 271(1)(c), and 275 of the Income-tax Act, 1961, concerning the powers of the Commissioner of Income Tax to revise orders. The case highlights the implications of procedural errors in tax assessments and the strict adherence to statutory time limits for imposing penalties. The final decision emphasized the necessity for the Income-tax Officer to consider relevant provisions before dropping penalty proceedings. The Tribunal's ruling clarified that the Commissioner could not revise the order under section 271(1)(c) after the penalty had been dropped, marking a significant precedent in administrative tax law. Understanding these nuances is crucial for tax practitioners and taxpayers alike, ensuring compliance and safeguarding rights within the framework of tax legislation. |
| Court |
Allahabad High Court
|
| Entities Involved |
|
| Judges |
R.K. Agarwal,
Prakash Krishna
|
| Lawyers |
A.N. Mahajan
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Braj Bhusan Cold Storage
|
| Citations |
2005 SLD 2364,
(2005) 275 ITR 360
|
| Other Citations |
Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83/ 109 Taxman 66 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
263,
271(1)(c),
275
|