Finesse International Design P. Ltd. v. ACIT Central Circle-4, New Delhi

Parties Involved

Facts Summary

The case involves two appeals filed by Finesse International Design P. Ltd. against the penalty orders passed by the Assistant Commissioner of Income Tax, Central Circle-4, New Delhi. The appeals pertain to the assessment years 2017-18 and 2018-19. The penalty was levied under sections 270A and 271AAB of the Income-tax Act, 1961. The assessee had filed revised returns after a search and seizure operation, disclosing higher income. The Tribunal had to decide whether the penalty could be levied based on the higher income disclosed in the revised returns.…

Legal Issues

• 1. Whether the penalty can be levied on the basis of higher income disclosed in the revised return filed after a search and seizure operation.
• 2. Whether Explanation-5 to Section 271(1)(c) of the Income-tax Act, 1961, is applicable in the facts of this case.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• ITA Nos.1137 to 1139/Chny/2024

  Chennai bench

• Income Tax Appellate Tribunal, Visakhapatnam Bench, Visakhapatnam

  Visakhapatnam bench

• Rishi Kyal vs. ACIT, Central Circle-3(2), Kolkata

• Sanjay Kumar Khemka vs. DCIT, CC-3(4), Kolkata

• Sanjay Kumar Khemka vs. DCIT, CC-3(4), Kolkata

  Kolkata Bench benchAY 2020-21Allowed

• Anurag Kyal vs. ACIT, Central Circle-3(2), Kolkata