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HIGH COURT OF JUDICATURE FOR RAJASTHAN, BENCH AT JAIPUR
AVNEESH JHINGAN, MANEESH SHARMA
Principal Commissioner Of Income Tax-I – Appellant
Versus
Ashok Kumar Maheshwari – Respondent
Order :
(AVNEESH JHINGAN, J.)
1. This appeal is filed under Section 260A of the Income Tax Act, 1961 (hereinafter ‘the Act’) against the order dated 14.06.2018 passed by the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur (for short ‘tribunal’).
2. The brief facts are that on 18.07.2012 a search was conducted at Nuwal Group, Jaipur of which the assessee- respondent (hereinafter ‘respondent’) was a member. In pursuance to the search, proceedings were initiated and the respondent filed return declaring income of Rs.15,46,83,000/-. The return was accepted and assessment was finalized on 13.03.2015, satisfaction for initiating the penalty proceedings under Section 271AAB was recorded in assessment order. Penalty was imposed vide order dated 20.08.2015. During the pendency of the appeal before the Commissioner of Income Tax (Appeal) (hereinafter ‘CIT’) the petitioner applied under the amnesty scheme and was issued certificate under the Direct Tax Dispute Resolution Scheme, 2016 (for short ‘the scheme’). The appeal was withdrawn on 11.11.2016. On the basis of audit objection that the penalty should have been imposed under Section 271AB instead of 271AAB, notice was issued by the revisio
Immunity granted under the Direct Tax Dispute Resolution Scheme precludes penalty imposition, regardless of the specific provision invoked.
The court established that payment of tax and interest prior to assessment qualifies a taxpayer for the waiver of penalties under the Amnesty Scheme, regardless of subsequent procedural misinterpreta....
The satisfaction of the Assessing Officer for penalty initiation must be recorded during proceedings; failure to do so does not render the assessment order erroneous or prejudicial to revenue.
The court established that a taxpayer who has paid the principal tax is entitled to a waiver of interest and penalty under the Amnesty Scheme, regardless of subsequent demands for penalty.
Immunity from penalty under the amnesty scheme applies broadly, including under S.271B of the Income Tax Act.
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