Itxa/6421/2010 Of The Commissioner Of Income Tax 7 Mumbai v. Ogilvy And Mather Pvt Ltd

N THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.2033 OF 2009 The Commissioner of Income Tax ..Appellant. V/s. M/s. Ogilvy & Mather Pvt. Ltd. ..Respondent. Mrs. Padma Divekar for appellant. None for respondent. CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED : 29TH AUGUST, 2009. P.C. :- 1.Heard learned counsel for the revenue. Office objections are overruled. Registry is directed to register the appeal. At the instance of the revenue, appeal is taken up for admission. 2.The issue sought raised in the appeal is relating to deletion of penalty levied on account of confirmed addition of Rs.17,13,391/- towards the gain from foreign exchange. After considering the submissions and facts and the circumstances, the Tribunal has by a reasoned order recorded a finding in paragraph 7 which reads as under:- " We have heard the learned representatives of the parties and perused the record. We find that where there is no quantum of penalty u/s.271(1)(c) leviable as per definition of amount of tax subject to be evaded defined in Explanation 4 to section 271(1). On consideration of facts of the case we find that addition of Rs.13,17,391/- on account of exchange rate difference is finally sustained by ITAT. The assessee has furnished the complete details while filing return of income. On identical set of facts the ITAT in the case of Mimosa Investment Company Pvt. Ltd. (supra) has cancelled the penalty where it was found that in such circumstances there is no concealment of particulars or furnishing of inaccurate particulars. The explanation furnished by assessee was not found false. Following the above decision of ITAT in the case of Mimosa Investment Company Pvt. Ltd. (supra), we are of the view that penalty u/s.271(1)(c) is not leviable on Rs13,17,391/- even the addition is sustained in quantum appeal. " 3.In the above view of the matter, no fault can be found with the view taken by the Tribunal. The view taken by the Tribunal is reasonable and possible view. 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.)