9911796707
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Issues:
Challenge against penalty levied under different tax acts for specific assessment years, violation of settlement terms, natural justice, limitation, concealment of income, reduction of penalty. Analysis: The petitioner, as a legal heir, challenged penalties under different tax acts for specific assessment years. The main contention was that the penalties were against the settlement terms agreed upon between the assessee and the Department. However, the court found that since the assessee and his legal heirs failed to comply with the settlement terms by not remitting the tax, the Department was not bound by the settlement. The court referred to previous judgments to support this decision, emphasizing that the Department could levy penalties as the tax arrears were not settled according to the agreement. Regarding the challenge based on the late assessee's health condition affecting his ability to contest the penalty, the court noted that penalties were imposed after issuing detailed notices and providing opportunities for representation. The court rejected the argument that the late assessee's health condition could invalidate the penalty, especially since the penalties were based on additional income revealed during settlement proceedings. On the issue of limitation, the court dismissed the argument of inordinate delay in penalty proceedings. It highlighted that there was no specific time limit for levying penalties for income concealment under the relevant tax acts. The court justified the time taken for penalty proceedings, considering the extensive process involved in detecting concealed income and finalizing assessments. The challenge against the merits of the case focused on the Department's authority to levy penalties without establishing mens rea. The petitioner argued that concealment of income required proof of intent, citing relevant Supreme Court decisions. However, the court found that the facts clearly indicated income concealment by the late assessee, leading to revised assessments and settlements based on the concealed income details. Lastly, the court addressed the reduction of penalty and emphasized the importance of settling the penalty amount to avoid accruing substantial interest. The court ordered a complete waiver of interest if the penalty arrears were paid by a specified deadline, providing relief to the petitioner and other legal heirs. The Assessing Officer was directed to adjust any excess tax payments towards the penalty amount, ensuring a fair resolution to the long-pending issue.
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