III. Judicial Pronouncements :
1. M/s EXPO INDUSTRIES AND OTHERS Vs. INCOME TAX OFFICER, Crl. Misc. No. M-37034 of 2001 Dated: 8th August 2011, HIGH COURT OF PUNJAB AND HARYANA
Whether when no addition is sustained and the penalty is deleted, the criminal proceedings are also liable to be quashed.
Once the penalty is deleted, the basis for criminal proceedings goes and the continuation of the criminal proceedings on the basis of the said penalty would be nothing but an abuse of process of law. Amnesty scheme was introduced and the petitioners availed benefit of the same and had surrendered the amount of Rs. 3,15,000/- by furnishing revised return and had paid the tax accordingly on the said amount. The addition of Rs. 35,000/- made in the assessment order was made on the basis of levy of penalty and since the penalty had been deleted, the said addition was also liable to be ignored. Thus, the criminal proceedings against the petitioners are liable to be quashed as the penalty imposed by the Assessment Officer has since been deleted.
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2. ASSTT DIRECTOR OF INCOME TAX Vs. SHRI RANJAY GULATI, ITA No. 1678 (Del) of 2011, Dated: 17th June 2011, ITAT – Delhi
Whether, for computation of capital gains on land sold by NRI, the fair market value of the land is to be reckoned with rather than the full value of the consideration received.
Where there was nothing with the AO to suggest that the assessee had received more than what was stated in the sale deed and, therefore, full value of consideration could not be adopted as per the DVO’s report which represented fair market value of industrial plot sold. Adoption of DVO’s report without providing opportunity of being heard was also against the principles of natural justice. There was thus no infirmity in the CIT(A) order, deleting the addition made by the AO.
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