Legal Case Summary

Case Details
Case ID 36fe488b-a914-4766-9619-6bf00c348a8c
Body View case body.
Case Number Miscellaneous Civil Case No.250 of 1993
Decision Date May 08, 1996
Hearing Date
Decision The Tribunal determined that the assessee had not withheld or concealed any material in the presented books of account, nor made any deliberate attempt to defraud the authorities. The assessing authority's penalty under section 271(1)(c) of the Income Tax Act was found to be unjustifiable. The court affirmed the Tribunal's decision, concluding that the assessee had complied with requirements and the penalty was not leviable due to lack of fraud or gross neglect.
Summary This case revolves around the assessment and penalty imposed under the Income Tax Act for alleged concealment of income by the assessee, which operated multiple liquor shops. The Assessing Officer had estimated the income based on a flat rate rather than the actual books of account maintained by the assessee, leading to a significant discrepancy in the reported income. The Tribunal found that the assessee had provided all necessary documentation, and there was no evidence of deliberate concealment or fraud. The High Court upheld the Tribunal's decision, emphasizing the importance of proper accounting practices and the legal standards for imposing penalties under tax law. This case highlights critical aspects of income tax assessment and the legal thresholds for imposing penalties, making it significant for legal practitioners and taxpayers alike.
Court Madhya Pradesh High Court
Entities Involved Not available
Judges A. K. MATHUR, C.J., S. K. KULSHRESTHA, J
Lawyers Abhay Sapre
Petitioners COMMISSIONER OF Income tax
Respondents SHIVNARAYAN JAMNALAL & CO.
Citations 2000 SLD 220, 2000 PTD 572, (1998) 232 ITR 311
Other Citations Not available
Laws Involved Indian Income Tax Act, 1961
Sections 271(1)(c)