PCIT Vs Parivar Television Pvt. Ltd. (Gujarat High Court)
The Gujarat High Court dismissed the Revenue’s appeal filed under Section 260A of the Income-tax Act, 1961, against the order of the Income Tax Appellate Tribunal (ITAT), Surat, relating to the block period from 1 April 1995 to 19 December 2001. The Revenue challenged the Tribunal’s decision deleting the penalty imposed under Section 271D, contending that the Tribunal had incorrectly relied on the Supreme Court’s decision in CIT v. Jai Laxmi Rice Mills, failed to uphold the findings of the Commissioner of Income Tax (Appeals), and decided the matter solely on the ground that no satisfaction for initiating penalty proceedings had been recorded in the assessment order without examining the merits.
Read ITAT Judgment in this case: No Satisfaction in Assessment Order: ITAT Surat Quashes Section 271D Penalty
The case arose from a search conducted under Section 132 in December 2001 and January 2002 in the Jayraj Group cases, during which the business premises of the assessee were also searched on 19 December 2001. A notice under Section 158BC was issued on 2 January 2003, requiring the assessee to file its block return of income. The Assessing Officer completed the block assessment on 31 December 2003, determining undisclosed income of Rs. 1,09,87,052.
