| Case ID |
ffd8d457-fb38-410a-ba66-9e476cb99801 |
| Body |
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| Case Number |
IT REFERENCE No. 151 OF 1991 |
| Decision Date |
Jan 28, 2005 |
| Hearing Date |
|
| Decision |
The Allahabad High Court held that the Tribunal was not justified in setting aside the order passed by the Commissioner under section 263. The failure to initiate penalty proceedings at the time of passing of the assessment order rendered the order erroneous and prejudicial to the interest of the revenue. The court also noted that proceedings under section 263 were initiated by the Commissioner on the grounds of incorrect credit for TDS certificates, which further justified the order's revision. The question was answered in favor of the revenue, against the assessee. |
| Summary |
In the case of IT REFERENCE No. 151 OF 1991, the Allahabad High Court dealt with the matter of whether the failure to initiate penalty proceedings under section 271B at the time of the assessment order rendered the order erroneous and prejudicial to the interest of the revenue. The case involved the Commissioner of Income Tax and Ashok Construction Co. as the primary parties. The court ruled in favor of the revenue, emphasizing that the Tribunal erred in setting aside the Commissioner's order under section 263. This decision was based on the fact that the failure to initiate penalty proceedings and the incorrect credit for TDS certificates both contributed to making the assessment order erroneous. The ruling serves as a significant precedent in the realm of income tax law, highlighting the importance of procedural correctness in assessment orders. The case underscores the necessity for assessing authorities to adhere strictly to statutory provisions to avoid orders being deemed prejudicial to revenue interests. Keywords: Income-tax Act, Section 263, Section 271B, Allahabad High Court, erroneous order, prejudicial to revenue, penalty proceedings, TDS certificates. |
| Court |
Allahabad High Court
|
| Entities Involved |
Commissioner of Income Tax,
Ashok Construction Co.
|
| Judges |
R.K. Agrawal,
Prakash Krishna
|
| Lawyers |
A.N. Mahajan
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Ashok Construction Co.
|
| Citations |
2006 SLD 3351,
2006 280 ITR 368
|
| Other Citations |
CIT v. Sri Surendra Prasad Agrawal [IT Reference No. 148 of 1984, dated 1-9-2004]
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
263,
271B,
44AB,
154
|