Ms. Madhushree Gupta v. Union of India

317 ITR 107High Court2009#1514 most cited

What is Ms. Madhushree Gupta v. Union of India authority for?

The Delhi High Court upheld the constitutional validity of Section 271(1B) of the Income-tax Act. For initiating penalty proceedings under Section 271(1)(c), the Assessing Officer's satisfaction is deemed recorded if the assessment or reassessment order includes a direction for such initiation.

75

judgments rely on this decision, according to BharatTax’s citation analysis of 366,459 Indian tax judgments — from 2009 to 2026.

Also referred to as

Madhushree Gupta · section 271(1B) constitutional validity · satisfaction of Assessing Officer · initiation of penalty proceedings · section 271(1)(c) · assessment order direction · penalty for concealment · furnishing inaccurate particulars

Also reported as

183 Taxmann 100

Sections most often in play

Section 143(3)Section 271(1)(c)Section 153ASection 14ASection 274Section 271(1B)Section 115BBESection 132

Issues it is cited on

section 271(1b)penalty u/s 271(1)(c)concealment of incomesection 274furnishing inaccurate particulars of incomefurnishing inaccurate particularslevy of penaltysection 271(1)non-application of mindsection 271section 271(1)(c)section 27

Judgments citing Ms. Madhushree Gupta v. Union of India

Basil International Limited, Kolkata vs. DCIT, Central Circle - Xxii, Kolkata

In the result, all the appeals of the assessee are allowed

ITA 1843/KOL/2009[2004-05]Status: DisposedITAT Kolkata24 Feb 2016AY 2004-05

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 132Section 139(1)Section 143(3)Section 153ASection 271(1)(c)

…f Suvaprasanna Bhattacharya (supra) has considered this aspect in detail in the light of the provisions of section 271(1B) of the Act as well as the decision of the Hon’ble Delhi High Court in the case of Ms. Madhushree Gupta –vs.- Union of India reported lin 317 ITR 107 (Del.) and that of the Hon’ble Supreme Court in the case of MAK Data Pvt. Limited –vs.- CIT reported in 358 ITR 593 (SC) and it is worthwhile to refer to the observations recorded in this context by the Tribunal in paragraphs no. 6 & 7 of its order, which are extracted below:- “6. We shall now deal with the question whether proper satisfaction wa…

Prithi Paul Singh Sethi, Kolkata vs. DCIT, Central Circle - Xxii, Kolkata

In the result, both the appeals of the assessee are allowed

ITA 1825/KOL/2009[2005-06]Status: DisposedITAT Kolkata24 Feb 2016AY 2005-06

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 132Section 153ASection 271(1)(c)

…2005-2006 & 2006-2007 Page 5 of 8 has considered this aspect in detail in the light of the provisions of section 271(1B) of the Act as well as the decision of the Hon’ble Delhi High Court in the case of Ms. Madhushree Gupta –vs.- Union of India reported lin 317 ITR 107 (Del.) and that of the Hon’ble Supreme Court in the case of MAK Data Pvt. Limited –vs.- CIT reported in 358 ITR 593 (SC) and it is worthwhile to refer to the observations recorded by the Tribunal in this context in paragraphs no. 6 & 7 of its order, which are extracted below:- “6. We shall now deal with the question whether proper satisfaction wa…

Vamshi Chemicals Limited, Kolkata vs. DCIT, Central Circle - Xxii, Kolkata

In the result, all the appeals of the assessee are allowed

ITA 1822/KOL/2009[2005-06]Status: DisposedITAT Kolkata24 Feb 2016AY 2005-06

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

Section 132Section 139(1)Section 153ASection 271(1)(c)

…f Suvaprasanna Bhattacharya (supra) has considered this aspect in detail in the light of the provisions of section 271(1B) of the Act as well as the decision of the Hon’ble Delhi High Court in the case of Ms. Madhushree Gupta –vs.- Union of India reported lin 317 ITR 107 (Del.) and that of the Hon’ble Supreme Court in the case of MAK Data Pvt. Limited –vs.- CIT reported in 358 ITR 593 (SC) and it is worthwhile to refer to the observations recorded in this context by the Tribunal in paragraphs no. 6 & 7 of its order, which are extracted below:- “6. We shall now deal with the question whether proper satisfaction wa…

Shri Rajesh Jain, Dehradun vs. ACIT, Dehradun

Accordingly, the appeal filed by the assessee stands allowed

ITA 528/DEL/2012[1997-98]Status: DisposedITAT Delhi12 Feb 2016AY 1997-98

Bench: Shri N.K. Saini & Smt. Beena Pillai

Section 143(2)Section 143(3)Section 250(6)Section 271(1)(c)

…DELHI BENCH: ‘F’ NEW DELHI BEFORE SHRI N.K. SAINI, ACCOUNTANT MEMBER & SMT. BEENA PILLAI, JUDICIAL MEMBER I.T.A .No.-528/Del/2012 (ASSESSMENT YEAR-1997-98) Rajesh Jain, vs ACIT, 154, Rajpur Road, Circle 2, Dehradun. Dehradun. AEOPJ7200B Appellant by Sh. Jeetan Nagpal, FCA Respondent by Sh. V.R. Sonbhadra, Sr. DR Date of Hearing 15.12.2015 Date of Pronouncement 12.02.2016 ORDER PER BEENA PILLAI, JUDICIAL MEMBER: The present penalty appeal has been filed by the assessee against the order of the ld. CIT(A)-II, Dehradun, vide order dated 16/11/2011 on the following grounds: 1. “That on the facts and circumst…

Gouri Das Maity, Purba Medinipur vs. Income Tax Officer-Ward-2, Haldia, Purba Medinipur

In the result, the appeal of the assessee is allowed as stated above

ITA 2590/KOL/2013[2007-2008]Status: DisposedITAT Kolkata02 Feb 2016AY 2007-2008

Bench: : Shri M. Balaganesh

For Appellant: Shri Vianeshwar Nath Dutta, Advocate, ld.ARFor Respondent: Shri A.R Roy, JCIT, ld.Sr.DR
Section 143(3)Section 271Section 271(1)Section 68

…65 (Kar) and which considered the applicability of newly inserted provision of secton 271(1B) of the Act with retrospective effect from 1.4.1989 and the decision of the Hon’ble Delhi High Court in the case of Ms. Madhushree Gupta vs Union of India reported in 317 ITR 107 (Del) in disposing the appeal of assessee on penalty levied u/s. 271(1) ( c ) of the Act. The ITAT has held as under:- “6. We shall now deal with the question whether proper satisfaction was arrived at by the AO for initiating penalty proceedings u/s.271(1)(c), in the course of concluding the assessment proceedings, wherein the additions in resp…

Uma Shankar Agarwal, Kolkata vs. DCIT, CC-I, Kolkata

In the result the appeals are allowed

ITA 1831/KOL/2009[2002-03]Status: DisposedITAT Kolkata20 Jan 2016AY 2002-03

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ]

For Appellant: Shri A.K.Tibrewal, FCAFor Respondent: Shri S.S.Alam, JCIT, Sr.DR
Section 132(1)Section 139(1)Section 153ASection 271(1)

…learned counsel pointed out that the Hon’ble Karnataka High Court in the aforesaid decision has considered the effect of Sec.271(1B) of the Act, in the light of the decision of the Hon’ble Delhi High Court in the case of Ms.Madhushree Gupta Vs. Union of India 317 ITR 107(Del) wherein it was held “In the result, conclusions are as follows : (i) sec. 271(1B) is not violative of Art. 14 of the Constitution; (ii) the position of law both pre and post amendment is similar, inasmuch, the AO will have to arrive at a prima facie satisfaction during the course of proceedings with regard to the assessee having concealed p…

Sri Satyananda Achariya Biswas, North 24 Parganas vs. DCIT, Centra Circle - Xiii, Kolkata

In the result, the appeal by the Assessee is allowed

ITA 5/KOL/2010[2003-04]Status: DisposedITAT Kolkata02 Dec 2015AY 2003-04

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] Assessment Years : 2003-04

For Appellant: Shri A.K.Tibrewal, FCAFor Respondent: Shri Debasish Lahiri, JCIT, Sr.DR
Section 132Section 153ASection 271Section 271(1)Section 274

…learned counsel pointed out that the Hon’ble Karnataka High Court in the aforesaid decision has considered the effect of Sec.271(1B) of the Act, in the light of the decision of the Hon’ble Delhi High Court in the case of Ms.Madhushree Gupta Vs. Union of India 317 ITR 107(Del) wherein it was held “In the result, conclusions are as follows : (i) sec. 271(1B) is not violative of Art. 14 of the Constitution; (ii) the position of law both pre and post amendment is similar, inasmuch, the AO will have to arrive at a prima facie satisfaction during the course of proceedings with regard to the assessee having concealed pa…

Sh. Shambhu Dayal, New Delhi vs. ACIT, Gurgaon

In the result, the appeal filed by the assessee is allowed

ITA 3391/DEL/2013[2006-07]Status: DisposedITAT Delhi30 Nov 2015AY 2006-07

Bench: Shri I.C.Sudhir & Shri O.P.Kantshambhu Dayal, Acit, C/O. Rra Taxindia, Gurgaon Circle, Vs. D-28, South Extension, Part-I, Gurgaon New Delhi Pan:Adwpd0056A (Appellant) (Respondent) Appellant By : Dr. Rakesh Gupta, Adv, Sh. Somil Agarwal, Adv Respondent By : Sh. Sujit Kumar, Sr. Dr

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Sh. Sujit Kumar, Sr. DR
Section 143(2)Section 144Section 271Section 271(1)Section 271(1)(c)

…onal defect and therefore the order of penalty imposed by the ld. Assessing Officer was without any jurisdiction. The Authorized Representative relied on the decision of the jurisdictional High Court in the case of ‘Madhushree Gupta’ Vs. Union of India (2009) 317 ITR 107 (Del) and further relied on the decision of ITAT Delhi ‘H’ Bench in the case of ‘Triveni Engineering and Industries Ltd.’ Vs. DCIT in ITA No. 5709/Del/2010. On the other hand the learned Senior Departmental Representative relied on the order of the lower authorities and submitted that in view of the non-compliance by the assessee on various notic…

Suvaprasanna Bhattacharya, Kolkata vs. ACIT, Circle - 55, Kolkata

In the result, appeal filed by assessee is allowed

ITA 1303/KOL/2010[2006-07]Status: DisposedITAT Kolkata06 Nov 2015AY 2006-07

Bench: Shri N.V. Vasudevan & Shri Waseem Ahmedassessment Year :2006-07 Suvaprasanna Bhatacharya V/S. Acit, Circle-55, Bh-167, Salt Lake, Sector- 54/1, Rafi Ahmed Ii, Kolkata-700 016 Kidwai Road, [Pan No.Aedpb 2611 R] Kolkata – 700 016 .. अपीलाथ" /Appellant ""यथ"/Respondent

Section 131Section 131(1)Section 142(1)Section 271(1)Section 28

…learned counsel pointed out that the Hon’ble Karnataka High Court in the aforesaid decision has considered the effect of Sec.271(1B) of the Act, in the light of the decision of the Hon’ble Delhi High Court in the case of Ms.Madhushree Gupta Vs. Union of India 317 ITR 107(Del) wherein it was held ITA No.1303/Kol/2010 A.Y. 2006-07 Suvaprasanna Bhattacharya v. ACIT, Cir-55, Kol. Page 8 “In the result, conclusions are as follows : (i) sec. 271(1B) is not violative of Art. 14 of the Constitution; (ii) the position of law both pre and post amendment is similar, inasmuch, the AO will have to arrive at a prima facie sat…

The Commissioner of Income Tax vs. M/S Mwp Ltd

ITA/332/2007HC Karnataka26 Nov 2013

Bench: N.KUMAR,RATHNAKALA

Section 143(3)Section 154Section 260ASection 271(1)(c)

…n, it shall be deemed to constitute satisfaction of the Assessing Officer for initiation of penalty proceedings under said clause (c). The said provision came up for interpretation by the Delhi High Court in the case of MADHUSHREE GUPTA reported in 317 ITR 107, wherein the Delhi High Court held that the satisfaction should be discernable in the assessment order. Position post amendment is not in much variance with pre- amendment. They held that provisions will fall foul of Article 14 of the Constitution if the same is not read in the manner it has read and in fact has read down the provisions t…

The Commissioner of Income Tax Gulbarga vs. M/S Manjunatha Cotton and Ginning Factory

The appeals are dismissed

ITA/2564/2005HC Karnataka13 Dec 2012

Bench: ARAVIND KUMAR,N.KUMAR

Section 260Section 260A

…® IN THE HIGH COURT OF KARNATAKA AT BANGALORE Dated this the 13th day of December, 2012 PRESENT THE HON’BLE MR. JUSTICE N KUMAR AND THE HON’BLE MR. JUSTICE ARAVIND KUMAR ITA No. 2564/2005 C/w ITA No.2565/2005, ITA No.5020/2009, ITA No. 5022/2009, ITA No. 5023/2009, ITA No. 5025/2010 and ITA No. 5026/2010 In ITA No.2564 of 2005 BETWEEN: 1. The Commissioner of Income Tax C. R. Building Gulbarga 2 2. The Income Tax Officer Ward-I C. R. Building Bellary …Appellants (By Sri Y.V. Raviraj, Advocate) AND: M/s. Manjun…

Astra Housing & Investment P.Ltd vs. Commissioner of Income Tax Delhi New Delhi

ITA - 622 / 2008HC Delhi03 Jun 2011
Section 158Section 158BSection 260ASection 271(1)(c)

…Page 10 of 14 Petroprdoucts Pvt. Ltd., (2010) 322 ITR 158 (SC); CIT v. Haryana Warehousing Corporation, (2009) 314 ITR 215 (P&H); CIT v. Sidhartha Enterprises, (2010) 322 ITR 80 (P&H); Ms.Madhushree Gupta v. Union of India, (2009) 317 ITR 107 (Delhi), CIT v. Nath Bros. Exim International Ltd., (2007) 288 ITR 670 (Delhi) and CIT v. Bacardi Martini India Ltd., (2007) 288 ITR 585 (Delhi). 11. The crux of the ratio of above decisions is that a mere omission or negligence would not constitute a deliberate act of suppressio veri or suggestio falsi. In order to be covered within the p…

Commissioner of Income Tax vs. Ecs Limited

ITA - 1003 / 2008HC Delhi05 Feb 2010
Section 271(1)(c)Section 80

…for the AO to record is satisfaction while initiating penalty proceedings. The vires of this provision were challenged by filing a writ petition in the Court. In the said case entitled *Madhushree* Gupta and British Airways LC vs. Union of India and Another [317 ITR 107] while upholding the validity of the aforesaid amendment, the Division Bench was of the opinion that provisions are to be read down and held that even after the amendment if the satisfaction is not discernible from the assessment order, penalty cannot be imposed. This would be clear from the reading of Paras 19 and 20 of the said judgment, wherei…

Commissioner of Income Tax vs. Ecs Ltd

ITA - 1030 / 2008HC Delhi05 Feb 2010
Section 271(1)(c)Section 80

…for the AO to record is satisfaction while initiating penalty proceedings. The vires of this provision were challenged by filing a writ petition in the Court. In the said case entitled *Madhushree* Gupta and British Airways LC vs. Union of India and Another [317 ITR 107] while upholding the validity of the aforesaid amendment, the Division Bench was of the opinion that provisions are to be read down and held that even after the amendment if the satisfaction is not discernible from the assessment order, penalty cannot be imposed. This would be clear from the reading of Paras 19 and 20 of the said judgment, wherei…

Ecs Ltd vs. Commissioner of Income Tax

ITA - 1248 / 2008HC Delhi26 Oct 2009
Section 271(1)(c)Section 80

…ry for the AO to record is satisfaction while initiating penalty proceedings. The vires of this provision were challenged by filing a writ petition in the Court. In the said case entitled Madhushree Gupta and British Airways LC vs. Union of India and Another [317 ITR 107] while upholding the validity of the aforesaid amendment, the Division Bench was of the opinion that provisions are to be read down and held that even after the amendment if the satisfaction is not discernible from the assessment order, penalty cannot be imposed. This would be clear 'from the reading of Paras 19 and 20 of the said judgment, where…