Supreme Court Pulls Up Income Tax Dept For Launching Prosecution For Tax Evasion Without ITAT Confirmation, Imposes Rs 2 Lakh Cost

The Supreme Court has pulled up the Income Tax Department for "launching a prosecution for tax evasion without ITAT confirmation" and has "imposed a ₹2 lakh cost." The court's decision, which is a significant victory for the company, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.