Director Of Income Tax (International Taxation) - I, Mumbai v. Capital International Inc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1862 OF 2012 Director of Income Tax (International Taxation) - I, Mumbai..Appellant. Versus Capital International Inc A/c MLC Life Limited, Mumbai..Respondent. Mr.Tejveer Singh for the appellant.None for the respondent. CORAM : J.P. Devadhar &M.S. Sanklecha, JJ. DATE : 5[th] February 2013 P.C. : 1.In this appeal by the Revenue for assessment year 2005-06, following question of law has been proposed for our consideration. “Whether, on the facts and in the circumstances of the case and in law, the Tribunal was correct in holding that penalty under Section 271(1)(c) is not leviable when parameters laid in Explanation 1(B) of Section 271(1)(c) stand satisfied ?” 2.The Tribunal has deleted the penalty under Section 271(1)(c) of the Income Tax Act, 1961 ('Act' for short) after upholding the finding of fact recorded by the Commissioner of Income Tax (A) that this was not a case of furnishing inaccurate particulars or concealing facts, as the same was always available with the assessing officer along with the return of income. The Tribunal recorded the fact that “this is a simple case of dis-allowance of loss, and has nothing to do with either inaccurate particulars or concealment of facts”. The Tribunal while deleting the penalty has followed the decision of the Apex Court in the matter of Commissioner of Income Tax V/s. Reliance Petroproducts Private Limited reported in 322 ITR 158 (S.C.), wherein it has been held that mere dis-allowance of a claim cannot ipso-facto lead to penalty. 3.In view of the above, we do not entertain the proposed question of law. Accordingly, the appeal is dismissed with no order as to costs. (M.S. Sanklecha, J.) (J.P. Devadhar, J.)