| Case ID |
f7dc78a6-f1dd-4011-a958-41202405457a |
| Body |
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| Case Number |
CIVIL APPEAL No. 6438 OF 2008 |
| Decision Date |
Nov 03, 2008 |
| Hearing Date |
|
| Decision |
The Supreme Court of India ruled in favor of the Department, affirming the penalty levied under section 271(1)(c) of the Income Tax Act, 1961 for concealment of income. The court referenced the prior decision in CIT v. Gold Coin Health Food (P.) Ltd. [2008] 304 ITR 308, establishing that the department's actions were justified as the positive income of the assessee had been effectively reduced to nil after considering carried forward losses. The appeal was allowed with no order as to costs. |
| Summary |
In the landmark case of Commissioner of Income Tax v. R.M.P. Plasto (P.) Ltd., the Supreme Court of India addressed the application of penalties for income concealment under the Income Tax Act, 1961. The central issue revolved around the interpretation of section 271(1)(c), where the Department had imposed a penalty after the assessee's positive income was nullified by previous years' carried forward losses. The court underscored the importance of maintaining integrity in income reporting and penalizing concealment to deter tax evasion. The ruling reinforced the precedent set in CIT v. Gold Coin Health Food (P.) Ltd., emphasizing the necessity of strict adherence to tax laws and the repercussions of non-compliance. This decision serves as a critical reference point for future cases involving income concealment and penalty assessments, highlighting the judiciary's commitment to uphold tax law and promote transparency in financial disclosures. |
| Court |
Supreme Court of India
|
| Entities Involved |
|
| Judges |
S.H. Kapadia,
B. Sudershan Reddy
|
| Lawyers |
Raghunath Basant,
Ranbir Chandra,
B.V. Balaram Das
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
R.M.P. Plasto (P.) Ltd.
|
| Citations |
2009 SLD 1145,
(2009) 313 ITR 397,
(2009) 184 TAXMAN 372
|
| Other Citations |
CIT v. Gold Coin Health Food (P.) Ltd. [2008] 304 ITR 308
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
27(1)(c),
271(1)(c)
|