COMMR.OF INCOMETAX,AHMEDABAD-IV vs C.A.TAKTAWALA

The Supreme Court held that the High Court erred in not addressing a substantial question of law under Section 260-A of the Income Tax Act, 1961, regarding the cancellation of a penalty under Section 18(1)(c) of the Wealth Tax Act. The Court emphasized that the Appellate Tribunal's decision to cancel the penalty based on the availability of the Amnesty Scheme was questionable, especially since the Assessee had revised its revenue multiple times post-search operation, indicating the return was not voluntary. The Court set aside the impugned order and remitted the matter to the High Court for fresh consideration.