Itxa/6971/2010 Of The Commissioner Of Income Tax - 1 Mumbai v. Galaxy Aviation Pvt. Ltd

itxa6971-10 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.6971 OF 2010 The Commissioner of Income Tax-1, Mumbai ..Appellant. V/s. M/s. Galaxy Aviation Pvt. Ltd. ..Respondent. Mr. Vimal Gupta, senior Advocate for the appellant.Mr. Atul K. Jasani for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ.DATED : 9TH OCTOBER, 2012 P.C. :- 1.Whether the ITAT was justified in deleting the penalty levied under Section 271 (1)(c) of the Income Tax Act, 1961, is the question raised in this appeal. 2.The assessment year involved herein is AY 2002-03. 3.On perusal of the order passed by the ITAT, it is seen that in the reopened assessment proceedings, the assessee voluntarily came forward and offered to pay tax which was not the basis for reopening of the assessment. However, penalty was levied under Section 271(1)(c) of the Income Tax Act, 1961 ('the Act' for short) on the amount of tax voluntarily offered by the assessee. On appeal, the Tribunal deleted the penalty by recording that, firstly the assessment was not reopened for recovery of tax voluntarily offered by the assessee and secondly, the said tax was not paid on account of unintentional error in the return of income and the said error was a bonafide error and that the explanation given by the assessee is acceptable. 4.In these circumstances, in our opinion, the decision of the Tribunal in deleting the penalty is based on finding of fact and no substantial question of law arises from the order of the Tribunal. The appeal is accordingly dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)