ACIT, CIRCLE-4, NAGPUR vs. M/S. VIGNAHARTA INVESTMENT & FINANCE COMPANY PVT. LTD., NAGPUR

ITA 48/NAG/2015Status: DisposedITAT Nagpur29 March 2019AY 2007-085 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the penalty order was liable to be quashed due to a legal deficiency in not specifying the charge (concealment of income or furnishing inaccurate particulars) at the time of recording satisfaction for initiating penalty proceedings, thus violating the principle of natural justice.

What were the facts?

The Assessing Officer made an addition of Rs. 98,00,000/- on account of non-compete fees and initiated penalty proceedings under Section 271(1)(c). The CIT(A) deleted the penalty, and the Revenue appealed this deletion.

What were the issues?

Whether penalty under Section 271(1)(c) can be levied when the Assessing Officer fails to specify the exact charge for initiating penalty proceedings, and whether non-compete fees are revenue or capital receipts.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 28(va)(b)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(3)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR

Before: SHRI D. KARUNAKARA RAO, AM & SHRI VIKAS AWASTHY, JM

For Appellant: Shri K.K. Thakar

PER VIKAS AWASTHY, JM :

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-II, Nagpur dated 12-11-2014 for the assessment year 2007-08 assailing deleting of penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2 ITA No. 48/NAG/2015, A.Y. 2007-08

2.

The brief facts of the case as emanating from records are : The assessee is a share broker. During the course of scrutiny as

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 271(1)(c)

All 25,141 judgments and leading authorities on Section 271(1)(c) →

Recent GST High Court judgments

Search GST case law →