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Commissioner Of Income-Tax vs Shree Raghunath Cotton Ginning And Oil ... on 26 October, 2004

16. The Hon'ble Karnataka High Court in CIT v. Manjunatha Cotton and Ginning Factory has held that a person who is accused of the conditions mentioned in section 271 should be made known about the grounds on which they intend imposing penalty on him as section 274 makes it clear that assessee has a right to contest such proceedings and should have full opportunity to meet the case of the Department and show that 63 ITA No. 1029 to 1034/JP/2019 Shri Laxman Nainani vs. DCIT the conditions stipulated in section 271(l)(c) do not exist as such he is not liable to pay penalty. The Hon'ble High Court went on to hold that:
Punjab-Haryana High Court Cites 14 - Cited by 1430 - A K Mittal - Full Document

Acit, Pune vs Marvel Realtors.& Developers Ltd., ... on 30 December, 2016

63. Now, coming to another contention raised by the ld AR wherein he has challenged the findings of the lower authorities that penalty U/s 271AAB is mandatory in nature and there is no discretion with the Income tax authorities. In this regard, we again refer to the provisions of Section 271AAB which begins with the stipulation that the Assessing officer may direct the assessee and the assessee shall pay the penalty as per clause (a) to (c) so satisfied in sub-section (1) to Section 271AAB. Further, as per sub-section (3) of Section 271AAB, the provisions of section 274 and section 275 as far as may be applied in relation to penalty under this section which means that before levying the penalty, the Assessing officer has to issue a show-cause granting an opportunity to the assessee. Thus, we find that the levy of penalty is not automatic but the Assessing officer has to decide based on facts and circumstances of the each case. It is a consistent view which has been taken by the various Co-ordinate Benches of the Tribunal and a useful reference can be drawn to the decision of the Co-ordinate Bench in case of ACIT vs Marvel Associates reported in 92 taxmann.com 109 wherein it was held as under:
Income Tax Appellate Tribunal - Pune Cites 15 - Cited by 56 - Full Document
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