Case Number: ITA 2309/DEL/2022
Appellant: Gawar Construction Co. Pvt Ltd, Hissar
Respondent: DCIT, CC-1, Faridabad, Faridabad
Assessment Year: 2016-17
Case Filed on: 2022-09-21
Order Type: Final Tribunal Order
Date of Order: 2023-05-09
Pronounced on: 2023-05-09
The case revolves around the imposition of penalties under Section 271(1)(c) of the Income Tax Act, 1961, which were levied based on the alleged furnishing of inaccurate particulars of income by Gawar Construction Co. Pvt Ltd. The penalties for the assessment year 2016-17 were part of broader proceedings covering multiple years, raising issues over the consistency and justification of such penalties.
During the proceedings, the appellant contested the penalties, arguing that there was a fundamental discrepancy between the initial grounds for satisfaction noted by the Assessing Officer and the grounds on which the penalties were eventually imposed. This discrepancy focused on whether the penalties were based on concealment of income or on providing inaccurate particulars.
The Income Tax Appellate Tribunal, led by Shri Chandra Mohan Garg and Shri Pradip Kumar Kedia, assessed the case’s merits. They found significant discrepancies in how the penalties were justified and ultimately ruled that the penalties imposed for the assessment year 2016-17 could not be sustained legally. This decision was influenced by past judgments which highlighted the need for clear and unambiguous grounds for penalty imposition.
The tribunal’s decision to cancel the penalties for Gawar Construction underlines the critical importance of precise and consistent application of tax laws. It serves as a precedent for similar cases, emphasizing the need for tax authorities to maintain a clear basis for penalty imposition throughout the assessment process.
Order pronounced in the open court on 09/05/2023.
Penalty Dispute Resolution for Gawar Construction Co. Pvt Ltd, AY 2016-17 – ITA 2309/DEL/2022
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