| Case ID |
22d00316-1518-4dc6-9553-39b1df8ae850 |
| Body |
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| Case Number |
I.T.C. No. 32 of 1998 |
| Decision Date |
Aug 11, 1999 |
| Hearing Date |
|
| Decision |
The Delhi High Court dismissed the application for reference, concluding that the Tribunal had correctly determined that the assessee explained the cash found during the search operations. The Tribunal's findings indicated that the cash availability was substantiated by the entries in the books of account, and there was no concealment of income. The penalty imposed by the Assessing Officer was deemed unjustified as the assessee's surrender of the income in the revised return did not warrant such action. The court affirmed the Tribunal's decision, establishing that there was no question of law arising from the case. |
| Summary |
In the case of I.T.C. No. 32 of 1998, the Delhi High Court addressed a significant matter concerning income tax penalties. The Commissioner of Income Tax contested the Tribunal's decision to cancel a penalty imposed on Gauri Shanker Sushil Kumar & Co. for alleged concealment of income. The Tribunal found that the assessee could explain the cash discovered in a search, supported by proper accounting entries. The court held that the penalty was unwarranted, emphasizing the importance of evidence in tax assessments and the legitimacy of revised returns. This case is pivotal for understanding tax law and the criteria for imposing penalties, making it a reference point for future income tax cases. The court's ruling reinforces that mere surrender of income does not automatically imply concealment, promoting fair practices in tax administration. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
Arun Kumar,
D. K. Jain
|
| Lawyers |
Sanjeev Khanna,
Ajay Kumar Jha,
S.R. Kharbanda
|
| Petitioners |
COMMISSIONER OF INCOME TAX
|
| Respondents |
GAURI SHANKER SUSHIL KUMAR & CO.
|
| Citations |
2001 SLD 415,
2001 PTD 2740,
(1999) 239 ITR 899
|
| Other Citations |
CIT v. Lal Chand Tirath Ram (1997) 225 ITR 675 (P & H)
|
| Laws Involved |
Indian Income Tax Act, 1961
|
| Sections |
256,
271
|