DR. VANDANA U. PATEL,,BARODA vs. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2,, BARODA

All the five appeals and all the three cross objections deal with a common issue with respect to penalties under section 271(1)(c) of the Income Tax Act, 1961, in respect of quantum additions relating to the investments in, and disbursements from, a undisclosed private discretionary trust by the name of Athena Trust settled by Dr A T Patel in favour of the family members.

Vide our order of even date, we have remitted the matter regarding taxability of the related quantum additions to the file of the Assessing Officer. We, therefore, deem it fit and proper to remit these penalty proceedings to the file of the Assessing Officer for fresh examination in the light of the findings in the related quantum proceedings de novo. Ordered accordingly.

In the result, all the five appeals and all the three cross objections are allowed for statistical purposes in the terms indicated above. Pronounced in the open court today on the 31st day of July, 2019.