The Income Tax Appellate Tribunal (ITAT) in New Delhi heard the case involving GD Foods and Manufacturing (India) Pvt Ltd against the Assistant Commissioner of Income Tax, Central Circle-26, New Delhi. The case centered on the validity of penalty proceedings under section 271(1)(c) for the assessment years 2009-10, 2013-14, and 2014-15. This legal battle traces its roots back to discrepancies noted by the Assessing Officer (AO) regarding concealed income and inaccurate particulars provided in the taxpayer’s filings.
The case was meticulously argued by both sides. For the revenue, Advocate Ajay Wadwa and Chartered Accountant Bharti Sharma represented, while Senior Departmental Representative Amit Katoch stood for the assessee. The pivotal issues debated included the applicability of penalty under section 271(1)(c) when the original notices issued by the AO did not specify the exact nature of the inaccuracies.
The Tribunal’s order, pronounced by Shri Chandra Mohan Garg, highlighted that the penalty proceedings initiated were flawed due to the lack of specific allegations in the notice served. The Tribunal, therefore, directed the deletion of the penalty, leaning on various precedents where similar penalties had been invalidated under comparable circumstances.
This case is significant for its detailed examination of procedural lapses that can undermine penalty proceedings. The Tribunal’s decision reaffirms the necessity for clear and specific allegations when initiating penalties for concealing income or providing inaccurate information. The final judgment favored the assessee, leading to the deletion of the contentious penalties for the years in question.
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