https://www.taxtmi.com/caselaws?id=767619 Calcutta HC held that ITAT's observation requiring stricter culpability standard for penalty under Section 271(1)(c) was legally unsustainable. The court relied on Dharamendra Textile Processors case, establishing that penalty provisions indicate strict liability without requiring willful concealment, as it's civil liability for revenue loss, not criminal prosecution. However, considering the penalty amount below Rs. 5 lakhs and assessee being individual, the court affirmed ITAT's relief deleting the penalty while setting aside the incorrect legal interpretation. Decision favored revenue on legal principle but maintained assessee's relief. en-us Fri, 07 Mar 2025 00:00:00 +0530 Fri, 21 Mar 2025 08:25:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767619 Calcutta HC held that ITAT's observation requiring stricter culpability standard for penalty under Section 271(1)(c) was legally unsustainable. The court relied on Dharamendra Textile Processors case, establishing that penalty provisions indicate strict liability without requiring willful concealment, as it's civil liability for revenue loss, not criminal prosecution. However, considering the penalty amount below Rs. 5 lakhs and assessee being individual, the court affirmed ITAT's relief deleting the penalty while setting aside the incorrect legal interpretation. Decision favored revenue on legal principle but maintained assessee's relief. Case-Laws Income Tax Fri, 07 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767619