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2011 (2) TMI 74 - HC - Income TaxApplication for rectification - which was dismissed - Tribunal after the order of High Court allowed the rectification application - It was not disputed between the parties that the penalty proportionate with the quantum - judgement of the tribunal set aside and the case remanded back to the Tribunal for redecision in accordance with law Appeal allowed
Issues: Appeal against Income Tax Appellate Tribunal's order under section 271(1)(c) of the Income Tax Act, 1961 for assessment year 1989-1990.
Analysis: 1. The appeal was filed against the order of the Income Tax Appellate Tribunal, Allahabad, dated 30.5.2002, related to proceedings under section 271(1)(c) of the Income Tax Act, 1961, for the assessment year 1989-1990. 2. The counsels for both parties were heard, with Shri Krishna Agarwal representing the appellant and Shri R.K. Upadhyaya representing the Income Tax Department. 3. The Tribunal had previously decided the appeal for the same assessment year on 20.7.1999. Subsequently, the assessee filed an application for rectification, which was dismissed on 29.9.1999. 4. A writ petition was filed against the dismissal of the rectification application, and it was allowed on 11.1.2010. The Tribunal was directed to reconsider the rectification application. 5. Following the High Court's order, the Tribunal allowed the rectification application on 26.2.2010 and reduced the quantum involved. 6. It was acknowledged by both parties that the penalty imposed was proportionate to the quantum. Since the quantum had been reduced, the issue of penalty needed to be revisited. 7. Consequently, considering the circumstances, the appeal was allowed, and the Tribunal's judgment dated 30.5.2002 was set aside. The case was remanded back to the Tribunal for a fresh decision in accordance with the law. 8. The assessee was directed to file a certified copy of the order before the Tribunal in the week starting 28.2.2011. The Tribunal was instructed to schedule a date for the case's reconsideration in compliance with the law. 9. The appeal was allowed with the above observations, emphasizing the need for the Tribunal to reexamine the penalty in light of the reduced quantum.
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