M/S KESARWANI ZARDA BHANDAR,ALLAHABAD vs. ACIT RANGE , ALLAHABAD

Facts

The assessee filed appeals against penalties levied under section 271(1)(c) of the Income Tax Act for assessment years 2004-05 to 2009-10, which were sustained by the CIT(A). These penalties originated from the Department's misinterpretation and incorrect implementation of a High Court judgment, which was subsequently clarified by the Tribunal and CIT(A) in the assessee's own case.

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 by giving due consideration to the orders of the High Court, the Income Tax Appellate Tribunal, and the CIT(A), including specific orders dated 15/07/2014, for all relevant assessment years.

Key Issues

Quantification of penalty u/s 271(1)(c) of the Income Tax Act after giving effect to appellate orders from the High Court, Tribunal, and CIT(A).