Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Issue: Whether a Revisional order under section 263 can direct initiation of penalty under section 271E absent the Assessing Officer's satisfaction in the assessment order. Reasoning: Relying on the Supreme Court principle that initiation/levy of penalty under s.271E requires satisfaction recorded in the assessment, the Revisional Authority erred in treating penalty initiation as independent of AO's satisfaction and in distinguishing earlier High Court precedent. Outcome: The section 263 order directing initiation of penalty under s.271E was unsustainable and is set aside; appeal allowed. - ITAT
Issue: Whether a Revisional order under section 263 can direct initiation of penalty under section 271E absent the Assessing Officer's satisfaction in the assessment order. Reasoning: Relying on the Supreme Court principle that initiation/levy of penalty under s.271E requires satisfaction recorded in the assessment, the Revisional Authority erred in treating penalty initiation as independent of AO's satisfaction and in distinguishing earlier High Court precedent. Outcome: The section 263 order directing initiation of penalty under s.271E was unsustainable and is set aside; appeal allowed. - ITAT
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