Case Law Details
PCIT Vs Bhudeva Estate Pvt. Ltd. (Delhi High Court)
PCIT vs. Bhudeva Estate Pvt. Ltd.: Delhi High Court Upholds Penalty Deletion on Account of Inadequate Notice
Introduction: The Delhi High Court recently addressed the matter of PCIT (Principal Commissioner of Income Tax) vs. Bhudeva Estate Pvt. Ltd., concerning the Assessment Year 2008-09. The appeal sought to challenge the order of the Income Tax Appellate Tribunal (ITAT) dated September 2022, which had upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) had set aside a penalty order dated March 31, 2017, issued under Section 271(1)(c) of the Income Tax Act, 1961. The central argument revolved around the deficiency in the notice, which failed to specify the grounds for imposing the penalty, whether for concealment of income or furnishing inaccurate particulars.
Condonation of Delay: Before delving into the substantive issues, the court considered two applications seeking condonation of delay in filing and re-filing the appeal. The appellant, representing the revenue, claimed a delay of 21 days in filing the appeal and an additional delay of 60 days in re-filing. The court, taking into account the submissions and finding no objections from the respondent’s counsel, duly condoned the delays.
Background of the Appeal: The appeal pertained to the assessment year 2008-09, challenging the ITAT’s decision on the appeal filed against the CIT(A)’s order dated January 30, 2020. The CIT(A) had set aside a penalty order issued by the Deputy Commissioner of Income Tax (DCIT) on March 31, 2017, under Section 271(1)(c) of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
