Ram Lal Narwani vs ITO, Ward-6(1), Jaipur

Parties Involved

Facts Summary

The assessee, Ram Lal Narwani, filed an appeal against the penalty imposed by the Assessing Officer under section 271A of the Income Tax Act, 1961 for the assessment year 2011-12. The penalty was imposed for non-maintenance of books of accounts. The assessee argued that the penalty should be deleted as the original assessment order, on which the penalty was based, was set aside and a fresh assessment order did not impose any penalty. The Tribunal considered the submissions and held that the penalty could not be sustained as it was based on the original assessment order which was set aside.…

Legal Issues

• 1. Whether the penalty of Rs 25,000 levied under section 271A of the Act can survive after the assessment order in which it was initiated has been set aside and the fresh assessment order does not initiate any such penalty.

Judgment Outcome

Decided in favour of Assessee.

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