Case Number: ITA 2308/DEL/2022
Appellant: Gawar Constructions Co. P.Ltd, Hisar
Respondent: DCIT, Central Circle-1, Faridabad
Assessment Year: 2015-16
Result: 2015-16
Case Filed on: 2022-09-21
Order Type: Final Tribunal Order
Date of Order: 2023-05-09
Pronounced on: 2023-05-09
The Income Tax Appellate Tribunal, Delhi Bench ‘B’, addressed a series of appeals filed by Gawar Constructions Co. P.Ltd concerning penalties imposed under Section 271(1)(c) of the Income Tax Act, 1961. The appeals covered multiple assessment years, with a focus on discrepancies in penalty imposition practices.
The case centered around the application and interpretation of penalties for concealment of income or furnishing inaccurate particulars. Discrepancies were noted between the initial ‘satisfaction’ of the Assessing Officer and the grounds upon which the penalties were ultimately imposed.
Both parties presented detailed arguments. The appellant contested the penalties based on alleged procedural lapses and mismatches in legal grounds, arguing that such discrepancies render the penalties unsustainable under the law.
The tribunal, led by members Shri Chandra Mohan Garg and Shri Pradip Kumar Kedia, found substantial merit in the appellant’s arguments, noting that the inconsistencies in the penalty imposition process compromised the legal validity of the penalties. As a result, the penalties for the assessment year 2015-16 were annulled.
This judgment emphasizes the importance of clarity and consistency in the execution of tax laws, particularly in the imposition of penalties. It highlights the need for the Assessing Officer to maintain continuity in the reasons for penalty imposition throughout the process.
Order pronounced in the open court on the 9th of May, 2023.
Analysis of Penalty Assessment Dispute for Gawar Constructions Co. P.Ltd, Hisar – ITA 2308/DEL/2022
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