Typo in Appeal Question Leads to High Court Ruling in Favor of Assessee

The High Court of Calcutta ruled in favor of the assessee, dismissing the appeal due to a typographical error in the question raised during the proceedings. The court found that the issue regarding the application of Explanation 5 of Section 271(1)(c) of the Income Tax Act, 1961, was already settled in previous judgments favoring the assessee. The correction made to the question aligned with the precedents, resulting in a decision against the revenue and in favor of the assessee.

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Issues: Typographical error in the question, Application of Explanation 5 of Section 271(1)(c) of the Income Tax Act, 1961, Judgments delivered in favor of the assessee

The judgment delivered by the High Court of Calcutta addressed the issue of a typographical error in the question formulated at the time of admission of the appeal. The respondent's senior advocate pointed out the error, which was not disputed by the appellant's advocate. The corrected question pertained to whether the Tribunal erred in applying the provisions of Explanation 5 of Section 271(1)(c) of the Income Tax Act, 1961, and modifying the penalty order for specific assessment years. The respondent's advocate argued that the issue was covered by previous judgments in favor of the assessee, specifically referring to unreported judgments from 2013 and 2015. The Court considered the arguments presented by both parties and concluded that the issue was indeed covered by the previous judgments delivered in favor of the assessee. Consequently, the question was answered in the negative, against the revenue and in favor of the assessee, leading to the dismissal of the appeal.

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