Case Law Details
PCIT Vs Minu Bakshi (Delhi High Court)
Introduction: The Delhi High Court, in the case of Principal Commissioner of Income Tax (PCIT) vs. Minu Bakshi, addressed an appeal against the Income Tax Appellate Tribunal’s order dated December 11, 2019. The crux of the matter was the imposition of a penalty under Section 271(1)(c) of the Income Tax Act, 1961, and whether the penalty notice sufficiently specified the grounds for imposition.
Background: Minu Bakshi, the respondent/assessee, had disclosed a taxable income of 11,76,296/- in her return for the Assessment Year 2007-08. Following a search under Section 132 of the Income Tax Act on December 10, 2012, and the issuance of a notice under Section 153A, the case was scrutinized. The Assessing Officer (AO) assessed the taxable income at Rs. 9,61,76,296/-, including an addition of Rs. 9,50,00,000/- on account of unaccounted cash receipts.
Penalty Proceedings: Penalty proceedings were initiated under Section 271(1)(c) of the Act, and a penalty of Rs. 3,19,77,000/- was initially imposed. However, this order was rectified, and the penalty amount was reduced to Rs. 2,13,18,000/-.
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