| Case ID |
44e63661-7caf-4af8-ab25-bb7b2b530a88 |
| Body |
View case body. Login to View |
| Case Number |
D-2741 of 2016 |
| Decision Date |
Jan 08, 2012 |
| Hearing Date |
|
| Decision |
The Patna High Court ruled that the Commissioner of Income Tax was correct in revising the order of the Assessing Officer that had dropped penalty proceedings under section 271(1)(c). The court emphasized that the term 'any order' in section 263 encompasses orders related to penalty, which are part of the broader proceedings under the Income-tax Act. The court found that the dropping of the penalty proceeding was erroneous and prejudicial to the interests of the revenue, thus justifying the Commissioner's action. The judgment reinforced the Commissioner’s authority to intervene in cases where the Assessing Officer's decisions may lead to revenue loss due to errors in judgment about penalty imposition. |
| Summary |
The case involves the interpretation of section 263 of the Income-tax Act, 1961, focusing on the Commissioner of Income Tax's power to revise orders that are erroneous and prejudicial to the revenue. The court examined whether the dropping of penalty proceedings by the Assessing Officer could be reviewed under this section. The decision highlighted the importance of ensuring that tax assessments are conducted fairly and in accordance with the law. The ruling established that the Commissioner can intervene when there is a clear loss of revenue due to incorrect assessments. This case sets a precedent for future interpretations of the law concerning tax assessments and penalties, emphasizing the necessity of accurate and justifiable decision-making in tax matters. |
| Court |
Patna High Court
|
| Entities Involved |
Not available
|
| Judges |
Dipak Misra, C.J.,
Mihir Kumar, Jha, J.
|
| Lawyers |
Krishna Nandan Singh,
Abhimanya Sharma,
Harshwardhan Prasad,
Mrs. Archana Sinha
|
| Petitioners |
R. A. Himmatsingka and Co.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
2012 SLD 3117,
(2012) 340 ITR 253
|
| Other Citations |
Rampyari Devi Saraogi v. CIT [1968] 67 ITR 84 (SC),
D.M. Manasvi v. CIT [1972] 86 ITR 557 (SC),
CIT v. Narpat Singh Malkhan Singh [1981] 128 ITR 77 (MP),
CIT v. S.V. Angidi Chettiar [1962] 44 ITR 739 (SC),
Sirpur Paper Mills Ltd. v. ITO [1978] 114 ITR 404 (AP),
C.A. Abraham v. ITO [1961] 41 ITR 425,
Addl. CIT v. Achal Kumar Jain [1983] 142 ITR 606 (Delhi),
CIT v. Associated Food Products P. Ltd. [2006] 280 ITR 377 (MP),
CIT v. Bhikaji Dadabhai and Co. [1961] 42 ITR 123 (SC),
CIT v. Braj Bhushan Cold Storage [2005] 275 ITR 360 (All.),
CIT v. Gabriel India Ltd. [1993] 203 ITR 108 (Bom.),
CIT v. Gold Coin Health Food P. Ltd. [2008] 304 ITR 308 (SC),
Addl. CIT v. Indian Pharmaceuticals [1980] 123 ITR 874 (MP),
Addl. CIT v. J. K. D' Costa [1982] 133 ITR 7 (Delhi),
Addl. CIT v. Kantilal Jain [1980] 125 ITR 373 (MP),
CIT v. Keshrimal Parasmal [1986] 157 ITR 484 (Raj.),
CIT v. Linotype and Machinery Ltd. [1991] 192 ITR 337 (Cal.),
CIT v. T. Narayana Pai [1975] 98 ITR 422 (Karn.),
CIT v. Sara Enterprises [1997] 224 ITR 169 (Mad.),
CIT v. Toyota Motor Corporation [2008] 306 ITR 49 (Delhi),
Addl. CWT v. Nathoolal Balaram [1980] 125 ITR 596 (MP),
Dawjee Dadabhoy & Co. v. S.P. Jain [1957] 31 ITR 872 (Cal.),
Malabar Industrial Co. Ltd. v. CIT[2000] 243 ITR 83 (SC),
Parashuram Pottery Works (P.) Ltd. v. ITO [1977] 106 ITR 1 (SC),
H.H. Rajdadi Smt. Badan Kanwar Medical Trust v. CWT [1995] 214 ITR 130 (Raj.),
Surendra Prasad Singh v. CIT [1988] 173 ITR 510 (Gauhati),
Smt. Tara Devi Aggarwal v. CIT[1973] 88 ITR 323 (SC),
Toyota Motor Corporation v. CIT [2008] 306 ITR 52 (SC),
Venkatakrishna Rice Co. v. CIT [1987] 163 ITR 129 (Mad.),
CIT v. Smt. Minalben S. Parikh [1995] 215 ITR 81 (Guj.),
New Jagat Textile Mills (P.) Ltd. v. CIT[2006] 282 ITR 399 (Guj.),
P.C. Puri v. CIT [1985] 151 ITR 584 (Delhi)
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| Laws Involved |
Income-tax Act, 1961
|
| Sections |
263,
271(1)(c)
|