6 Gyan Chand Jain through L.R. vs. Commissioner of Income Tax
(2022) 443 ITR 241 (SC)
Penalty - Concealment of Income - Sanction by Additional Commissioner - The post of Joint Commissioner of Income Tax includes Additional Commissioner of Income Tax – Sanction valid
Appeal to High Court - Monetary limits - What is required to be considered is what was under challenge before the Tribunal as well as the High Court - The subsequent order cannot oust the jurisdictionThe assessee furnished the return of income, declaring a total income of Rs. 61,800 on 30th October, 1998. The assessment was completed u/s 143(3). Thereafter the proceedings u/s 263 were initiated. The income of the assessee, after the order passed by the Tribunal on merits pursuant to the order, passed u/s 263, was substantially enhanced to what was declared by the assessee and pursuant thereto, the penalty proceedings u/s 271(1)(c) was initiated. The Assessing Officer after seeking sanction from the Additional Commissioner of Income-tax imposed minimum penalty u/s 271(1)(c) of Rs. 29,02,743 being 100% tax on the concealed income of Rs. 97,65,209.
On an appeal, the Commissioner of Income-tax (Appeals) sustained the penalty only on the commission income of Rs. 19,93,474 and directed levy of minimum penalty on the tax sought to be evaded on the said commission income.
Aggrieved, both the Assessing Officer and the assessee preferred appeals before th
