| Case ID |
2aca70fd-8dda-4b5b-aa6e-754cb72fc2d0 |
| Body |
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| Case Number |
CASE REFERRED No. 235 of 1976 |
| Decision Date |
|
| Hearing Date |
Jun 07, 1971 |
| Decision |
The Tribunal's order was justified in setting aside the penalty imposed by the IAC due to failure to afford reasonable opportunity to the assessee. The case was remitted back to the IAC for a fresh decision on merits, upholding the principles of natural justice. The High Court did not express any opinion regarding the merits of the case, focusing solely on the procedural aspects. The Tribunal's approach was criticized for first addressing the merits before considering natural justice violations. Thus, the matter was directed to be reassessed by the IAC following due procedure. |
| Summary |
In the case referred to as CASE REFERRED No. 235 of 1976, the Income-tax Appellate Tribunal examined the legality of a penalty imposed under sections 271(1)(c) and 274(1) of the Income-tax Act, 1961. The case arose when the assessee-firm reported an income of Rs. 36,496 but discrepancies led the Income Tax Officer (ITO) to reassess it at Rs. 53,510. The IAC imposed a penalty of Rs. 19,000 after denying a request for adjournment due to the managing partner's illness. The Tribunal found that the IAC violated natural justice by not granting a reasonable opportunity for the assessee to present its case. This case highlights the importance of procedural fairness in tax proceedings, ensuring that all parties have a fair chance to be heard. The decision reinforces the need for adherence to legal protocols in penalty assessments. |
| Court |
Hyderabad Bench
|
| Entities Involved |
Not available
|
| Judges |
Kondaiah, C.J.
|
| Lawyers |
P. Rama Rao,
M.J. Swamy
|
| Petitioners |
Boina Suranna
|
| Respondents |
Addl. Commissioner of Income Tax
|
| Citations |
1980 SLD 1080,
(1980) 124 ITR 328
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(c),
274(1)
|