KESARWANI ZARDA BHANDAR,ALLAHABAD vs. ACIT, CENTRAL CIR., ALLAHABAD, ALLAHABAD

Facts

The assessee filed appeals against penalties levied under Section 271(1)(c) for AYs 2004-05 to 2009-10, which were sustained by the CIT(A). The department had initially misinterpreted an Hon'ble High Court judgment while giving effect to it, leading to incorrect ITNS 150 calculations. These issues were subsequently clarified by the Tribunal and CIT(A).

Held

With the agreement of both parties, the Tribunal restored the matter of quantifying the penalty under Section 271(1)(c) to the Assessing Officer. The A.O. is directed to re-compute the penalty after duly considering the orders of the Hon'ble High Court, Income Tax Appellate Tribunal, and CIT(A) for determining the surviving quantum additions and the tax sought to be evaded.

Key Issues

Whether the quantification of penalty under Section 271(1)(c) of the Income Tax Act, 1961, was correctly computed, in light of a High Court judgment and subsequent clarifications by the Tribunal and CIT(A).