ITA No. 26/DEL/2019 is an appeal filed by Kalinga Cables & Conduit Co. against the penalty imposed by the Income Tax Department for violations related to excise duties during the assessment year 2014-15. This case was presided over by Shri H.S. Sidhu, Judicial Member at the Income Tax Appellate Tribunal in New Delhi.
The core of the dispute revolves around a penalty of Rs. 62,197, confirmed by the CIT(Appeals), which the appellant argued was imposed without a fair opportunity to contest. The appellant’s grievances included the CIT(A)’s haste in decision-making and alleged disregard for the appellant’s submissions, which suggested the penalty expenses were incurred inadvertently and should not attract penalties under section 271(1)(c) of the IT Act.
During the tribunal proceedings, it was highlighted that the expense in question pertained to penalties for excise duty violations, not disclosed in the original tax return and detected during assessment. The tribunal’s discussion reflected on various precedents, including the Supreme Court’s stance in similar matters, emphasizing that non-disclosure of such critical information justifies the imposition of penalties.
The tribunal ultimately dismissed the appeal, upholding the first appellate authority’s decision, reinforcing the principle that penalties for excise duty violations, especially when not disclosed in tax returns, are justified to ensure compliance and transparency in tax matters.
ITA 26/DEL/2019: Kalinga Cables vs. ACIT on Penalty for Excise Duty Violations for AY 2014-15
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