Nagaraj Latha vs. The Income Tax Officer

Parties Involved

Facts Summary

Nagaraj Latha, the assessee, filed an appeal against the penalty of Rs. 12,57,000/- levied under section 271(1)(c) of the Income-tax Act, 1961 for the Assessment Year 2010-11. The penalty was levied due to the assessee's failure to cooperate during assessment and penalty proceedings, leading to the conclusion of concealment of income. The assessee had previously appealed against the addition of Rs. 36 Lakhs from undisclosed sources, which was remitted to the Assessing Officer (A.O) for reconsideration. Despite this, the assessee did not respond to any notices, leading to the penalty being levied. The assessee argued that the penalty was levied without proper opportunity and that the A.O did not specify under which limb the penalty was initiated. The Departmental Representative supported the lower authorities' orders.…

Legal Issues

• 1. Whether the penalty was levied without providing proper opportunity to the assessee.
• 2. Whether the A.O recorded whether Additional Commissioner of Income Tax (Addl. CIT) approval was obtained before levying the penalty.

Judgment Outcome

Decided in favour of Assessee.

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