LAWS(GJH)-2005-7-85

COMMISSIONER OF INCOME-TAX Vs. PARMANAND M. PATEL

Decided On July 06, 2005
COMMISSIONER OF INCOME -TAX Appellant
V/S
PARMANAND M. PATEL Respondents

JUDGEMENT

(1.) THE following question has been referred by the Income -tax Appellate Tribunal, Ahmedabad Bench B' under Section 256(1) of the Income -tax Act, 1961 (the Act) at the instance of the Commissioner of Income -tax.

(2.) THE Assessment Year is 1982 -83 and the relevant accounting period is year ended on Aso Vad Amas S.Y. 2039. The assessee filed a return of income on 13th August, 1984 and the assessment came to be completed on 26th November, 1984 under Section 143(3) of the Act.

(3.) THE assessee carried the matter in appeal before the Tribunal. Vide order dated 12th April, 1990 the Tribunal held that the assessee was justified in resisting the directions regarding levy of penalty under Section 271(1)(a) of the Act. The directions issued by the Commissioner were not in accordance with the law as interpreted by the High Courts of Delhi and Rajasthan on which reliance had been placed by the assessee. The contrary decisions rendered by Madhya Pradesh High Court were noted and it was observed by the Tribunal that in such a situation it is the view which is in favour of the assessee that has to be adopted. Therefore, the order of Commissioner was partially struck down whereby the Commissioner had directed initiation of penalty proceedings.