Itxa/4282/2010 Of The Commissioner Of Income Tax 3 Mumbai v. Reliance Industries Investments

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.1906 OF 2009 The Commissioner of Income Tax ..Appellant. V/s. Reliance Industrial Investments & Holdings Ltd. ..Respondent. Mr. Vimal Gupta for appellant. Mr. J.D. Mistri i/b. Raj Darak for respondent. CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED : 11TH SEPTEMBER, 2009. P.C. :- 1.Heard learned counsel for the parties. Office objections are overruled. Registry is directed to register the appeal. At the instance of the parties, appeal is taken up for admission. 2.The basic questions revolves around deleting the penalty levied under section 271(1)(c) of the Income Tax Act. The Tribunal after appreciation of evidence has recorded a finding of fact which reads as under:- " Moreover, we have also independently examined the facts of the case in this regard and we find that on account of non-acceptance of the claim of the assessee, the additions / disallowances can be made in quantum, but, penalty under section 271(1)(c) cannot be invoked, unless and until it is proved that assessee has either concealed the income or has furnished the inaccurate particulars. We, therefore, following the above order of the Tribunal are of the view that under given facts and circumstances of the case, the penalty under section 271(1)(c) cannot be levied on account of disallowance of claim of short term capital loss on sale of IPCL shares. We, accordingly, delete the same. " 3.Having gone through the above reasons, the view taken by the Tribunal cannot be faulted. In this view of the matter, no substantial question of law arise in the appeal. The appeal is dismissed in limini with no order as to costs. (J.P.DEVADHAR, J.) (V.C.DAGA, J.)