| Case ID |
51477854-d72c-46b7-9acc-33b398680fb3 |
| Body |
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| Case Number |
TAXATION CASE Nos. 78 AND 79 OF 1973 |
| Decision Date |
Oct 03, 1985 |
| Hearing Date |
|
| Decision |
The Tribunal set aside the penalty order imposed by the IAC, concluding that the assertion of the assessee regarding the return was sufficient to discharge the onus of proof. The Tribunal's decision was grounded on the principle that no penalty could be imposed unless there was deliberate defiance of law or dishonest conduct. The matter was remanded back to the Tribunal for fresh consideration in light of the substantial relief granted to the assessee, which indicated that the difference between the assessed and returned income was now less than 20 percent. This shift in circumstances necessitated a reevaluation of the penalty issue, ensuring compliance with legal standards based on the finally assessed sum. |
| Summary |
This case revolves around the application of penalties under Section 271(1)(c) of the Income-tax Act, 1961 due to alleged concealment of income. The Patna High Court addressed the appeals filed by the Additional Commissioner of Income Tax against Chandmull Radha Kishun regarding penalties imposed for discrepancies between returned and assessed incomes. The Tribunal had earlier ruled in favor of the assessee, emphasizing that the assertion regarding the income return satisfied the burden of proof. The case highlights the legal standards for imposing penalties, focusing on the necessity for deliberate wrongdoing or dishonesty. With the Tribunal granting significant relief to the assessee, the case required a reassessment of the penalty under the new circumstances. This decision underlines the importance of fair tax practices and the legal obligations of taxpayers, reinforcing the principles of accountability and transparency within the taxation framework. |
| Court |
Patna High Court
|
| Entities Involved |
Not available
|
| Judges |
Uday Sinha,
Nazir Ahmad
|
| Lawyers |
B.P. Rajgarhia,
S.K. Sharan,
Rameshwar Prasad,
Bipin Bihari Sinha
|
| Petitioners |
Addl. Commissioner of Income Tax
|
| Respondents |
Chandmull Radha Kishun
|
| Citations |
1986 SLD 1753,
(1986) 161 ITR 172
|
| Other Citations |
Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(c),
256(1),
256(2)
|