{"id":237300,"date":"2011-10-19T00:00:00","date_gmt":"2011-10-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-vs-heard-on-19-october-2011"},"modified":"2018-03-06T07:02:51","modified_gmt":"2018-03-06T01:32:51","slug":"commissioner-vs-heard-on-19-october-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-vs-heard-on-19-october-2011","title":{"rendered":"Commissioner vs Heard on 19 October, 2011"},"content":{"rendered":"
Gujarat High Court<\/div>\n
Commissioner vs Heard on 19 October, 2011<\/div>\n
Author: Akil Kureshi, Gokani,<\/div>\n
  \n Gujarat High Court Case Information System \n    \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nTAXAP\/148\/2011\t 4\/ 4\tORDER \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nTAX\nAPPEAL No. 148 of 2011\n \n\n \n \n=========================================================\n\n \n\nCOMMISSIONER\nOF INCOME TAX-II - Appellant(s)\n \n\nVersus\n \n\nMAMTA\nMACHINERY PVT LTD - Opponent(s)\n \n\n=========================================================\n \nAppearance\n: \nMRS\nMAUNA M BHATT for\nAppellant(s) : 1, \nMR MANISH J SHAH for Opponent(s) :\n1, \n=========================================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE AKIL KURESHI\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS JUSTICE SONIA GOKANI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 19\/10\/2011 \n\n \n\n \n \nORAL\nORDER<\/pre>\n
(Per
\n: HONOURABLE MS JUSTICE SONIA GOKANI)<\/p>\n
Revenue
\n\thas challenged the order of the Income Tax Appellate Tribunal dated
\n\t16th July, 2010 proposing following question of law for
\n\tconsideration:\n<\/p>\n
“Whether
\nthe Appellate Tribunal is right in law and on facts in deleting levy
\nof penalty on commission income and rate difference in foreign
\nexchange?”\n<\/p>\n
\tHeard
\n\tlearned counsel Mrs. Mauna Bhatt for the revenue and learned counsel
\n\tMr. Shah for Caveator-respondent. At the outset, it was pointed out
\n\tto us that the issue concerns levying of the penalty, only in
\n\trelation to the commission income and not on account of rate
\n\tdifference on the foreign exchange as suggested in the question
\n\tproposed.\n<\/p>\n
\tAs
\n\tcan be noted, the CIT (A) in its order had confirmed the levying of
\n\tthe penalty on commission income of Rs.19,63,490\/- from the business
\n\tprofit from computation of deduction under Section 80HHC. The
\n\tTribunal in its discussion has noted that this was a debatable issue
\n\tand therefore, there was no justification in levying the penalty as
\n\thas been done. As has been pointed out to us, this Court in Tax
\n\tAppeal No.1786 of 2010 also adjudicated an identical question and
\n\tupheld the order of the Tribunal of not sustaining the order of the
\n\tAssessing Officer of imposing the penalty in the following manner:\n<\/p>\n
\t“Issue
\npertains to penalty under section 271(1)(c) of the Income Tax Act,
\n1961.  The Assessing Officer  imposed penalty for claim made by the
\nassessee  under section 80HHC of the Act, but found not  acceptable.
\nCIT (Appeals), rejected the assessee’s appeal. In further appeal, the
\nTribunal, however,   restored the matter to the file of the Assessing
\nOfficer for working out the  penalty making following  observations :\n<\/p>\n
“16.\tIn
\nthis year, penalty under section 271(1)(c) is levied on addition made
\nby the AO by disallowing  the claim of assessee for deduction under
\nsection 80HHC on commission, interest etc. The AO levied  the penalty
\nin respect of entire  addition without identifying as to which items
\nwere in the knowledge of the assessee that they were required   to be
\nexcluded.  The ld. CIT(A) practically restored the matter to the file
\nof AO for  working out those items of addition for calculating
\ndeduction under section 80HHC which were in the knowledge  of
\nassessee.\n<\/p>\n
17.\tWe
\nhave heard ld. AR and Ld. DR.  Since it has to be satisfied as to
\nwhich item under Explanation  (baa) to section 80HHC is clearly
\ndisallowable and which items are debatable we restore  the matter to
\nthe file  of AO for re-working out the levy of penalty after giving
\nan opportunity  of being heard and identifying clearly those items
\nwhich cannot at all be treated as income  derived  from export
\nactivities.  No penalty under section 271(1)(c) can be levied  in
\nrespect of  items of exclusion  of income which are debatable.   We
\naccordingly, allow the appeal of assessee but for statistical
\npurposes.”\n<\/p>\n
\tWe
\nsee no reason to interfere.  The Tribunal to the extent the claim was
\ndependable directed the Assessing Officer  not to levy penalty and
\nfor the rest of the items, the Assessing Officer was permitted to
\npass fresh order  No question  of law arises.  Tax Appeal is
\ndismissed”.\n<\/p>\n
\tThe
\n\tquestion has\u00a0since already been decided by this Court and as
\n\tthe treatment accorded to the same by the Tribunal in the present
\n\tTax Appeal also warrants no interference and when no further
\n\tquestion of law is at large, this tax appeal is dismissed.\n<\/p>\n
 (AKIL
\n\tKURESHI, J.)<\/p>\n
(Ms.\n<\/p>\n
SONIA GOKANI, J.)<\/p>\n
(ashish)<\/p>\n
\t\t   \u00a0\u00a0\u00a0<\/p>\n
\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"
Gujarat High Court Commissioner vs Heard on 19 October, 2011 Author: Akil Kureshi, Gokani, Gujarat High Court Case Information System Print TAXAP\/148\/2011 4\/ 4 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 148 of 2011 ========================================================= COMMISSIONER OF INCOME TAX-II – Appellant(s) Versus MAMTA MACHINERY PVT LTD – Opponent(s) ========================================================= Appearance […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-237300","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"\nCommissioner vs Heard on 19 October, 2011 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/commissioner-vs-heard-on-19-october-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commissioner vs Heard on 19 October, 2011 - 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