Ker HC to Municipal Corp.: Provide Complaint No. to Citizens to Report Unauthorized Waste Dumping  ||  JKL HC: Can’t Fastened Liability Based on Chief Exam. Without Affording Opportunity to Cross Examine  ||  Ker HC to State: Consider Representation by CBSE Schools Assoc. Against Proposed Fee Regulatory Comm.  ||  Ker. HC: Printing Agencies Required to Remove Illegal Hoardings Within 7 Days of Notice  ||  Cal. HC: Police Can’t Use Power U/S 160 CrPC to Call/Arrest Someone Unconnected With Alleged Offence  ||  Cal. HC: Acquiring Property in Name of Wife is Not Benami Transaction  ||  Bombay HC Upholds Validity of Section 13(8)(b) and Section 8(2) of IGST Act  ||  Del. HC: Haj Pilgrimage is a Religious Practice  ||  SC: If Sufficient Evidence of Involvement Exists, Person Not Named in FIR can be Added as Accused  ||  SC: Possessory Right of Prospective Purchaser Protected U/S 53A of TP Act    

Commissioner Of Income Tax (International Taxation) vs. Gracemac Corporation - (High Court of Delhi) (15 Mar 2022)

Penalty can only be levied in cases where concealment of income has been proven

MANU/DE/0871/2022

Direct Taxation

Present appeal has been filed challenging the order passed by Delhi Bench of the ITAT ('Tribunal'). The Appellant states that, the charging of interest under Section 234B of the Income Tax Act, 1961 (IT Act) is consequential and mandatory. He submits that, since the Assessing Officer in the original assessment order had given a specific direction to charge interest, non-levy of interest under Section 234B of the IT Act while computing tax demand was a mistake apparent on the record and was therefore rectifiable under the provisions of Section 154 of the IT Act.

The penalty can only be levied in such cases where concealment of income has been proven. If the quantum order itself has been set aside in an appeal preferred by the respondent/assessee, there is no question of penalty being levied.

In Pr. Commissioner of Income Tax (Central) -2 vs. Harsh International Pvt. Ltd., this Court has held that, levy of penalty cannot be a matter of course, as sought to be contended by the Revenue. It can only be levied in cases where the concealment of income has been proven. If the quantum order itself has been challenged and this Court has framed substantial questions of law in the appeal preferred by the respondent-assessee, it shows that the alleged concealment is not final and the issue is disputable. Consequently, the penalty levied by the assessing officer cannot survive in such a case.

Present Court is of the view that no substantial question of law arises for consideration in the present appeal. Appeal dismissed.

Tags : ASSESSMENT   PENALTY   LEVY  

Share :        

Disclaimer | Copyright 2023 - All Rights Reserved