Sector 113 Gatevida Private Limited vs. ACIT, Circle 4 (1), Gurgaon

Parties Involved

Facts Summary

The Assessing Officer completed the assessment under section 143 (3) of the Income-tax Act, 1961 on 26.12.2016 at an income of Rs.379,64,74,760/-. The Assessing Officer initiated penalty proceedings by issuing a notice under section 271(1)(c) of the Act read with section 274. The assessee disagreed with the contentions raised by the Assessing Officer and preferred an appeal before the Commissioner of Income Tax (Appeals), Delhi. The Commissioner partly allowed the appeal of the assessee. The assessee is now in appeal before the Income Tax Appellate Tribunal, raising various grounds, including that the penalty proceedings were initiated without specifying the relevant limb in the notice issued under section 274 of the Act.…

Legal Issues

• 1. Whether the penalty proceedings were initiated without specifying the relevant limb in the notice issued under section 274 of the Act?
• 2. Whether the penalty order is liable to be quashed?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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