Law:

Section:

2008] 306 ITR 52 [2008] 173 TAXMAN 458 (SC) SUPREME COURT OF INDIA Toyota Motor Corporation* v. Commissioner of Income-tax DR. ARIJIT PASAYAT AND DR. MUKUNDAKAM SHARMA, JJ. CIVIL APPEAL NO. 5313 OF 2008 AUGUST 25, 2008 Section 271C, read with section 274, of the Income-tax Act, 1961 - Penalty - For failure to deduct tax at source - Assessing Officer disposed of proceedings stating that penalty proceedings initiated in instant case under section 271C, read with section 274, were to be dropped - On revenue's appeal, Tribunal referred to certain aspects and held that initiation of proceedings under section 263 was impermissible when considered in background of materials purportedly placed by assessee before Assessing Officer - On further appeal, High Court opined that Tribunal could not have subs-tituted its own reasonings which were required to be recorded by Assessing Officer - Accordingly, High Court remanded matter to Assessing Officer for disposal afresh by passing a reasoned order - Whether, on facts, impugned order passed by High Court did not require any interference - Held, yes Soli J. Sorabjee, Sanjay Kochar, Sampath, S. Anant, Krishan Mahajan, Ms. Lakshmi Iyengar and Ms. Sandhya Goswami for the Appellant. JUDGMENT Dr. Arijit Pasayat, J. - Heard learned counsel for the petitioner. 2. Delay condoned. 3. Leave granted. 4. We are not inclined to interfere with the impugned order of the High Court. The High Court has held that the Assessing Officer had disposed the proceedings stating the penalty proceedings initiated in this case under section 271C, read with section 274 of the Income-tax Act, 1961 are hereby dropped. According to the High Court, there was no basis indicated for dropping the proceedings. The Tribunal referred to certain aspects and held that the initiation of proceedings under section 263 of the Income-tax Act, 1961 (in short 'the IT Act') was impermissible when considered in the background of the materials purportedly placed by the assessee before the Assessing Officer. What the High Court has done is to require the Assessing Officer to pass a reasoned order. The High Court was of the view that Tribunal could not have substituted its own…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492