Fraudulently obtained SEIS scrips cannot support customs exemption; recovery, confiscation and penalties were sustained, but employee penalty fell awa...
Section 270A requires a prior determination of under reporting or misreporting of income before levy of penalty because the penalty is an additional tax dependent on basic tax liability; confirming penalty while a quantum appeal against a disallowance remained undecided was held impermissible as it adjudicated additional tax prematurely and infringed natural justice. The impugned penalty confirmation was quashed and the matter remitted for disposal of the quantum appeal first, after which penalty may be considered in accordance with law.
Section 270A requires a prior determination of under reporting or misreporting of income before levy of penalty because the penalty is an additional tax dependent on basic tax liability; confirming penalty while a quantum appeal against a disallowance remained undecided was held impermissible as it adjudicated additional tax prematurely and infringed natural justice. The impugned penalty confirmation was quashed and the matter remitted for disposal of the quantum appeal first, after which penalty may be considered in accordance with law.
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