Case Law Details
PCIT Vs Gopal Kumar Goyal (Delhi High Court)
Introduction: The Delhi High Court’s recent judgment in the case of PCIT vs Gopal Kumar Goyal raises questions about the imposition of penalties under Section 271(1)(c) of the Income-tax Act, 1961. The court dismissed the Departmental appeal, highlighting a crucial failure in clarifying the grounds for penalty imposition.
Detailed Analysis: The appeal pertains to the Assessment Year (AY) 2004-05, focusing on the order dated 30.03.2022 and the corrigendum dated 08.04.2022 issued by the Income Tax Appellate Tribunal (Tribunal). The key issue was whether the penalty under Section 271(1)(c) had been appropriately imposed.
A significant flaw emerged in the Assessing Officer’s (AO) actions, as there was a lack of clarity in indicating the specific ground for levying the penalty—whether due to concealment of income or furnishing inaccurate particulars. This ambiguity worked against the appellant/revenue, as established by precedents cited in the impugned order.
The Tribunal, in its order dated 30.03.2022, disposed of the cross-appeals filed by the parties. Subsequently, another related appeal (ITA No. 345/2023) concerning the same AY was adjudicated by the court, resulting in a detailed order that found no substantial question of law for consideration.
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