Case Law Details
DCIT Vs Milan Kavinchandra Parikh (ITAT Mumbai)
Introduction: The Income Tax Appellate Tribunal (ITAT) Mumbai recently delivered a pivotal judgment in the case between the Deputy Commissioner of Income Tax (DCIT) and Milan Kavinchandra Parikh. The judgment raises key questions surrounding the jurisdiction of penalties levied under section 271(1)(c) of the Income Tax Act, 1961. This article offers a comprehensive analysis of the case, focusing on the grounds raised by the Revenue and the reasoning provided by the Tribunal for dismissing the appeal.
Grounds Raised by the Revenue: The Revenue contested the deletion of the penalty levied under section 271(1)(c) of the Income Tax Act by the Commissioner of Income Tax (Appeals). Their arguments focused on three main issues:
1. Foreign Bank Account Ownership: The Revenue claimed that specific information had been received from a foreign government pointing to Parikh’s beneficial ownership of an undisclosed foreign bank account.
2. Failure to Provide Proper Explanation: According to the Revenue, Parikh had failed to adequately explain the undisclosed foreign bank accounts in proceedings.
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