75th Founding Day Lecture Meeting on “India@2030” Know More

October 2009

Substantial Question of Law — Cancellation of penalty on the ground that the benefit under the amnesty scheme was available to the assessee even though there was material to show that the return was not voluntary gives rise to a substantial question of la

By Kishor Karia, Chartered Accountant
Atul Jasani, Advocate
Reading Time 1 mins

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5. Substantial Question of Law — Cancellation of penalty on
the ground that the benefit under the amnesty scheme was available to the
assessee even though there was material to show that the return was not
voluntary gives rise to a substantial question of law.

[CIT v. C. A. Taktawala, (2009) 309 ITR 340 (SC)]

The Supreme Court held that the High Court had erred in not
answering the following question, which in its opinion was a substantial
question of law.

“Whether, on the facts and circumstances of the case, the
Tribunal was right in law and on facts in cancelling the penalty levied
u/s.271(1)(a) and u/s.273(2)(a) of the Income-tax-Act on the ground that the
benefit under the amnesty scheme was available to the assessee, particularly
when subsequent to search operation, the assessee itself had revised its
returns on a number of occasions, which would go to show that the return was
not voluntary”.

 

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