Income Tax Act | Bona Fide Belief With Genuineness Of Transaction Constitutes Reasonable Cause U/S 273B; No Penalty Imposable U/S 271E: Chhattisgarh HC

The Chhattisgarh High Court held that bona fide belief coupled with genuineness of transactions constitutes a reasonable cause under section 273B of the Income Tax Act for not invoking Section 271E of the Act. The Division Bench of Justices Sanjay K. Agrawal and Deepak Kumar Tiwari referring to Section 273B of the Income Tax Act stated that the word 'reasonable cause' has not been defined in the Income Tax Act, 1961. Therefore, in the context of the penalty provisions, the words...

Penalty U/S 271(1)(c) Of Income Tax Act Not Applicable If Assessee Voluntary Discloses Bona Fide Mistake: Chhattisgarh High Court

In a recent ruling, the Chhattisgarh High Court held that penalty under Section 271(1)(c) of Income Tax Act not applicable if assessee voluntary discloses bona fide mistake. Section 271(1)(c) of the Income Tax Act, 1961 deals with penalties for concealment of income or furnishing inaccurate particulars of income. The Division Bench of Justices Sanjay K. Agrawal and Deepak Kumar Tiwari noted that “it is a case where the assessee came up fairly before the Assessing Officer correcting...

Execution Proceedings Can't Be Quashed Solely Due To Non-Supply Of Signed Arbitral Award: Chhattisgarh High Court

The Chhattisgarh High Court bench of Justice Rakesh Mohan Pandey has held that non-supply of the signed arbitral award may be a ground for setting aside an award, but on this ground alone, the execution proceedings cannot be quashed. Brief Facts The petitioner purchased a vehicle through a hire purchase agreement with respondent No.1/bank. The petitioner failed to make payment of installments, therefore, according to the agreement, an arbitrator was appointed. The arbitrator passed...

Additional Evidence Can Only Be Allowed In Exceptional Circumstances While Deciding Plea U/S 34 Of Arbitration Act: Chhattisgarh HC

The Chhattisgarh High Court bench of Justice Rakesh Mohan Pandey has held that additional evidence not forming part of the arbitral record can be allowed to be given only in exceptional circumstances while hearing a petition under section 34 of the Arbitration Act. Brief Facts: The petitioner challenges an order passed by the commercial court by which an application under section 65 of the Indian Evidence Act was allowed. The petitioner submitted that respondent had filed an...

[Municipal Corporation Act] Writ Petition Against District Judge's Order Upholding Imposition Of Property Tax Not Maintainable: Chhattisgarh HC

The Chhattisgarh High Court has held that it cannot exercise writ jurisdiction against an order by the District Judge, which is the Appellate Authority under the Municipal Corporation Act 1956, upholding imposition of property tax. In doing so, single judge Justice Narendra Kumar Vyas cited Section 149 of the Act which prescribes that the Appellate Authority is amenable to revisional jurisdiction of the High Court. It said, “From bare perusal of Section 149 of the Act, 1956, it is ...

Findings Of Arbitrator U/S 34 Of Arbitration Act Cannot Be Scrutinised As If Court Is Sitting In Appeal: Chhattisgarh High Court

The Chhattisgarh High Court bench of Justices Smt. Rajani Dubey and Shri Bibhu Datta Guru has held that findings of the Arbitrator cannot be scrutinised under section 34 of the Arbitration Act as if the court is sitting in appeal. Brief Facts The claimant is a partnership firm and registered contractor with South Eastern Coalfields Ltd. (SECL). The claimant was awarded a contract for constructing an approach road to the Kapildhara Project. Despite completing the work by the claimant,...

Court At Designated Seat Would Have Exclusive Jurisdiction To Entertain Applications Arising Out Of Arbitration: Chhattisgarh HC

The Chhattisgarh High Court bench of Justices Shri Sanjay K. Agrawal and Shri Radhakishan Agrawal has held that court having supervisory jurisdiction over seat designated in the Arbitration Agreement would have exclusive jurisdiction to entertain all applications arising out of the arbitration proceedings. Brief Facts The present appeal has been filed under section 37 of the Arbitration Act against an order passed by the Commercial Court on August 6, 2024 by which an application by...