Itxa/1292/2012 Of The Commissioner Of Income Tax -(Central) v. Dhariwal Industries Ltd

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1291 OF 2012ANDINCOME TAX APPEAL NO.1292 OF 2012 The Commissioner of Income Tax, Central, Mumbai ..Appellant. V/s. Dhariwal Industries Ltd. ..Respondent. Mr. Vimal Gupta, Senior Advocate i/b. Padma Divakar for the appellant.Mr. Nitesh Joshi with Atul K. Jasani for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ.DATED : 13TH FEBRUARY, 2013 P.C. :- 1.In these appeals by the revenue for the assessments years 2000-01 and 2002-03, the basic question raised is, whether on the facts and circumstances of the case, the Tribunal was justified in deleting the penalty under Section 271(1)(c) of the Income Tax Act (the Act) when the assessee's claim for deduction under section 80IA and 80I of the Act for manufacture of gutka was negatived in the quantum 2.By the impugned order, the Tribunal has deleted the penalty imposed by the respondent-assessee on the ground that at the time of filing of the return of income, there were orders of the Tribunal on merits (Kothari Products v/s. ACIT 38 IDD 285) wherein the deduction on products similar to that manufactured by the respondent-assessee were granted benefit under Section 80IA of the Act. The Tribunal also records that there was complete disclosure of facts on the part of the respondent-assessee while claiming deduction under Section 80IA & 80I of the Act. As held by the Tribunal, merely because a claim has been disallowed would not by itself lead to imposition of penalty. The reasoning given by the Tribunal is in accordance with the decision of the Supreme Court in the matter of CIT V/s. Reliance Petroproducts Pvt. Ltd. reported in [2010] 322 ITR 158 (SC). 3.In view of the above, we see no reason to entertain the above appeals. Accordingly, both the appeals are dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)