| Case ID |
20dcb28a-e2b4-49c6-8397-f4e00fa8a85a |
| Body |
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| Case Number |
CIVIL MISCELLANEOUS WRIT No. 360 OF 1966 |
| Decision Date |
Sep 21, 1966 |
| Hearing Date |
|
| Decision |
The court ruled in favor of the petitioner, Om Prakash Agarwal, stating that the Income Tax Officer (ITO) failed to dispose of the petitioner's application for staying penalty proceedings before imposing a penalty for non-payment of income tax. The ITO is required to determine whether the assessee is in default and must provide a reasonable opportunity for the assessee to be heard before levying any penalty. The decision emphasized the necessity for the ITO to consider the circumstances of the case, including pending appeals, before concluding that an assessee is in default. The penalty order was quashed, and the ITO was directed to consider the application and dispose of the penalty proceedings. |
| Summary |
In the case of Om Prakash Agarwal v. Income Tax Officer, the Allahabad High Court addressed critical issues concerning the Income-tax Act, 1961, particularly sections 220 and 221. The petitioner, Om Prakash Agarwal, challenged a penalty order imposed by the ITO for non-payment of assessed income tax during the pendency of an appeal. The court underscored the importance of the ITO's obligation to provide the assessee with a fair hearing and to consider any pending applications for stay of proceedings. The ruling established that an ITO must assess whether the taxpayer is in default, factoring in the taxpayer's appeal status and any extenuating circumstances. This case highlights the procedural safeguards afforded to taxpayers under the Income-tax Act, emphasizing the necessity of due process in tax enforcement actions. The decision reinforces the principle that tax authorities must act judiciously and transparently, ensuring taxpayers are not unduly penalized without proper consideration of their circumstances. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
R.S. PATHAK, J.
|
| Lawyers |
R.K. Upadhya,
S.C. Bharadwaj,
R.L. Gulati
|
| Petitioners |
Om Prakash Agarwal
|
| Respondents |
Income Tax Officer
|
| Citations |
1967 SLD 556,
(1967) 66 ITR 175
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
220,
221
|