2025 (10) TMI 480 - SCH - Income Tax

Special leave petition dismissed: penalty proceedings cannot be sustained when original assessment order has been set aside

The Principal Commissioner of Income Tax 1 Versus Parivar Television Pvt. Ltd.

SC dismissed the special leave petition, holding that where the original assessment order has been set aside, the satisfaction recorded for initiating ... Penalty u/s 271D - notice u/s. 158BC was issued requesting assessee to file Block return of income for the taxable income including the undisclosed income for the block period - HC [2023 (10) TMI 707 - GUJARAT HIGH COURT] held when the original assessment order itself was set aside, the satisfaction recorded therein for the purpose of initiation of the penalty proceedings under Section 271E would also not survive. HELD THAT:- The High Court has relied upon the decision of this Court in the case of M/s. Jai Laxmi Rice Mills (Ambala City)[2015 (11) TMI 1453 - SUPREME COURT] which squarely covers the issue raised in this petition. No merit in the special leave petition, the same stands dismissed. The High Court's decision was affirmed because it 'relied upon the decision of this Court in the case of Commissioner of Income Tax, Panchkula v. M/s. Jai Laxmi Rice Mills (Ambala City), Civil Appeal No. 1457 of 2008,' which the Court found 'squarely covers the issue raised in this petition.' The special leave petition was examined in light of that precedent and, finding no arguable legal infirmity, the Court dismissed the petition. Standard procedural relief was addressed: all pending applications were directed to 'stand disposed of.' The outcome rests on stare decisis to the cited precedent, applying established principles from the earlier decision to the present facts and concluding there is no ground to entertain the special leave petition.