Case Number: ITA 2307/DEL/2022
Appellant: Gawar Constructions Co. Pvt Ltd, Hisar
Respondent: DCIT, Central Circle-1, Faridabad
Assessment Year: 2014-15
Order Type: Final Tribunal Order
Date of Order: 2023-05-09
Pronounced on: 2023-05-09
Gawar Constructions Co. Pvt Ltd faced penalties under Section 271(1)(c) of the Income Tax Act, 1961, for the alleged concealment of income and furnishing inaccurate particulars of income across multiple assessment years. The penalties were challenged by the appellant in tribunal.
The main issues revolved around the validity of penalties imposed for different amounts across the assessment years 2013-14 to 2016-17. Specifically, the challenge was against the ground on which the penalties were imposed, citing discrepancies between the reasons for satisfaction noted by the Assessing Officer and the actual grounds on which the penalties were levied.
Arguments were presented by both the appellant, represented by Shri Ashwani Kumar, and the respondent, represented by Shri T. James Singson. The appellant contested the rationale behind the penalties, especially highlighting procedural flaws and inconsistencies in the application of penalty provisions.
The tribunal, led by Judicial Member Shri Chandra Mohan Garg and Accountant Member Shri Pradip Kumar Kedia, heard the case and reviewed the penalties imposed. They identified that the basis for penalty initiation did not consistently align with the grounds cited at the time of penalty imposition. This discrepancy was found to invalidate the penalties as per precedents set by previous tribunal decisions.
The tribunal concluded that the penalties for the respective years under review were unjustifiably imposed due to procedural inconsistencies. All penalties for the years in question were ultimately canceled, providing relief to Gawar Constructions Co. Pvt Ltd.
This case highlights the importance of maintaining procedural accuracy and consistency in the imposition of penalties under tax laws. It underscores the need for the Assessing Officers to adhere strictly to the legal standards and requirements stipulated for penalty provisions.
Order pronounced in the open Court on 09/05/2023.
Penalty Imposition Dispute for Gawar Constructions Co. Pvt Ltd for AY 2014-15 – ITA 2307/DEL/2022
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