Case Law Details
PCIT Vs Modi Rubber Ltd. (Delhi High Court)
Introduction: The Delhi High Court, in the case of Principal Commissioner of Income Tax (PCIT) vs. Modi Rubber Ltd., addressed an appeal related to Assessment Year (AY) 2003-04. The primary issue revolved around the initiation and imposition of a penalty under Section 271(1)(c) of the Income Tax Act, 1961. The court scrutinized whether the failure of the Assessing Officer (AO) to specify the exact charge under the section is detrimental to the penalty proceedings.
Background: The appeal sought to challenge the order passed by the Income Tax Appellate Tribunal (Tribunal) on June 14, 2018.
Key Questions Proposed: The questions of law proposed in the appeal were:
1. Whether the Tribunal was justified in law in deleting the penalty under Section 271(1)(c) by relying on the decision in the case of SSA Emerald Meadows, ignoring the AO’s satisfaction regarding furnishing inaccurate particulars of income?
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