A huge relief came for Balaji Telefilms as the Income Tax Appellate Tribunal(ITAT) as the Income tax penalty of Rs 10 Crore was dropped off against on Friday. The penalty was put up against them after a massive raid conducted in 2013.
The ITAT bench of Mahavir Singh and Manoj Kumar Aggarwal observed that "failure of assessing officer to frame specific charge against the assesse during penalty proceedings would be fatal to penalty proceedings itself." Such failures deprive the department from levying any penalty, they added.
It all started in 2013 when the Income Tax Department started out a three day raid on the Balaji Group on 30th April,2013. During the Raid the department were able to disclose a figure of Rs 32 Crore.
The ITAT said in an official statement that "The Revenue Department is unable to demonstrate that specific charge was ever framed." With being unable to prove their wrongdoing, the penalty was then dropped.
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