Case Law Details
Prateek Chitkara Vs JCIT (Delhi High Court)
In a recent judgement, the Delhi High Court has overturned a penalty order issued under the Black Money Act (BMA). The case, Prateek Chitkara Vs Joint Commissioner of Income Tax Central, highlights the importance of thorough record-keeping and consideration of all relevant documents, including electronic communications, when issuing penalties.
The penalty order, dated 29.03.2023, was issued for Assessment Year 2019-20 under Section 41 of the BMA. However, the court found that the assessing officer had failed to consider a crucial email sent by the assessee in response to a show cause notice issued prior to the penalty order.
This email contained the assessee’s plea that the penalty proceedings should be held in abeyance as an appeal on the quantum levy was still pending before the Commissioner of Income Tax (Appeals). Despite the presence of this email in the records, the assessing officer proceeded to issue the penalty order, stating that the assessee had not furnished any submissions.
Further, the assessee raised a jurisdictional issue, arguing that the penalty order should have been passed by an officer of specific rank as mandated under the BMA, with the approval of the Joint Commissioner or the Joint Director.
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