KESARWANI ZARDA BHANDAR,SHSON, ALLAHABAD vs. ITO, ALLAHABAD

Facts

The assessee appealed against penalties levied under Section 271(1)(c) for AYs 2004-05 to 2009-10, which were sustained by the CIT(A). The department's re-computation (ITNS 150) based on a High Court judgment was disputed as a misinterpretation, with the matter currently subjudice for re-calculation by the jurisdictional Assessing Officer.

Held

The Tribunal, with the agreement of both parties, restored the matter of penalty quantification under Section 271(1)(c) to the Assessing Officer. The AO is directed to re-quantify the penalty after considering orders from the High Court, Tribunal, CIT(A), and specific directions from an order dated 15/07/2014.

Key Issues

Proper quantification of penalty under Section 271(1)(c) of the Income Tax Act, 1961, after incorporating various appellate authority orders and directions.