Rajasthan HC Quashes Penalty against ITO As Error of Judgment Is Not Misconduct

Union of India Vs N.P. Arora (Rajasthan High Court) The Union of India challenged an order of the Central Administrative Tribunal (CAT), Jodhpur, which had quashed a charge-sheet dated 27.10.2010 and a penalty order dated 10.12.2010 issued against an Income Tax Officer who, as Assessing Officer, had allowed an assessee’s claim for exemption under Section 10B of the Income Tax Act for Assessment Year 2007-08. The disciplinary proceedings arose from an assessment order dated 24.12.2009 passed in favour of an assessee engaged in the manufacture and export of handicraft items. In earlier assessm...