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TAXAP/776/2010 2/ 2 ORDER
IN
THE HIGH COURT OF GUJARAT AT AHMEDABAD
TAX
APPEAL No. 776 of 2010
=========================================
COMMISSIONER
OF INCOME TAX - Appellant(s)
Versus
AJANTA
TRANSISTOR CLOCK MFG CO - Opponent(s)
=========================================
Appearance :
MR
M R BHATT SR ADV with MRS MAUNA M BHATT
for Appellant(s) : 1,
None
for Opponent(s) : 1,
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CORAM
:
HONOURABLE
MR.JUSTICE AKIL KURESHI
and
HONOURABLE
MS JUSTICE SONIA GOKANI
Date
: 19/07/2011
ORAL
ORDER
(Per
: HONOURABLE MR.JUSTICE AKIL KURESHI)
1. The
revenue has challenged decision of the Tribunal dated 21.11.2008
deleting penalty of Rs. 4,27,000/- under Section 271 (1)(c) of the
Income Tax Act, 1961 imposed by the Assessing Officer and confirmed
by CIT(A).
2. Counsel
for the revenue vehemently contended that the Tribunal gravely erred
in deleting the penalty on the premise that since the additions were
made on the basis of estimate of income, no penalty can be imposed.
Had it been sole ground for deleting penalty, we would have been
persuaded to look into issue further. However, the Tribunal also
observed that penalty cannot be imposed by mere application of
explanation to Section 271 (1)(c) in absence of any evidence to
conclude that there was concealment of income. Thus, the Tribunal was
of the opinion that there was no evidence to hold that there was
concealment of income and therefore deletion of penalty order is
based on such conclusion, we do not see any reason to interfere. Tax
Appeal is, therefore, dismissed.
[AKIL
KURESHI, J.]
[SONIA
GOKANI, J.]
JYOTI
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