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...
The HC held that revision under section 264 is maintainable against a penalty order under section 270A even if the order is otherwise appealable, because the bar in section 264(4) is limited to the specific situations stated there. The Principal Commissioner therefore wrongly declined to examine the revision on merits. On the penalty, the Court found no under-reported income where the PF/ESI disallowance had already been added in the section 143(1)(a) intimation and the assessment merely repeated the same addition; the statutory ingredients of section 270A were not met. The assessee also made full disclosure and advanced a bona fide claim, attracting the section 270A(6)(a) exception. The revisional and penalty orders were quashed.
The HC held that revision under section 264 is maintainable against a penalty order under section 270A even if the order is otherwise appealable, because the bar in section 264(4) is limited to the specific situations stated there. The Principal Commissioner therefore wrongly declined to examine the revision on merits. On the penalty, the Court found no under-reported income where the PF/ESI disallowance had already been added in the section 143(1)(a) intimation and the assessment merely repeated the same addition; the statutory ingredients of section 270A were not met. The assessee also made full disclosure and advanced a bona fide claim, attracting the section 270A(6)(a) exception. The revisional and penalty orders were quashed.
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