M/S KESARWANI ZARDA BHANDAR,ALLAHABAD vs. JCIT(C.C), ALLAHABAD, ALLAHABAD

Facts

The assessee appealed against penalties levied under section 271(1)(c) for multiple assessment years, which were sustained by the CIT(A). The dispute arose from the department's alleged misinterpretation of a High Court judgment while giving effect to it, leading to incorrect penalty quantification, a matter already subjudice with the Assessing Officer.

Held

The Tribunal, with both parties' agreement, restored the penalty quantification under section 271(1)(c) back to the Assessing Officer. The AO is directed to re-quantify the penalty, considering all prior appellate authorities' orders (High Court, Tribunal, CIT(A)) and specific orders dated 15/07/2014, across all relevant assessment years.

Key Issues

Proper quantification of penalty under Section 271(1)(c) of the Income Tax Act, considering previous judgments and orders from higher appellate authorities after the department's initial giving effect order.