2021 (9) TMI 818 - HC - Income Tax

Penalty u/s 271(1) (c) - substantial question of law - HELD THAT - Appeal is admitted and substantial question of is law is framed. Penalty amount is paid, no demand is pending against assessee In the circumstances, pending consideration of appeal we deem it appropriate to stay operation of the impugned order in terms of prayer clause (a), which reads thus - (a) That the operation of the impugned order dated 3/8/2016 (Exhibit-K) be stayed pending the present appeal is finally heard and disposed off. . Interim application is accordingly disposed of in aforesaid terms. Interim application is accordingly disposed of . Interim application is accordingly disposed of.

Summary

The Bombay High Court stayed the operation of an impugned order dated 3rd August, 2016 related to a penalty under section 271(1)(c) of the Income Tax Act, 1961. The appeal has been admitted and a substantial question of law has been framed. The applicant has paid the penalty amount, and no demand is pending against the assessee. The court deemed it appropriate to stay the operation of the impugned order pending the appeal.