Pr. Commissioner Of Income Tax, Shimla v. M/S Yash International

IN THE HIGH COURT OF HIMACHAL PRADESH SHIMLA ITA No. 110 of 2018 Date of decision: 11.04.2019 ________________________________________________________ Pr. Commissioner of Income Tax, Shimla Versus …..Petitioner M/s Yash International …Respondent ________________________________________________________ Coram: The Hon’ble Mr. Justice Surya Kant, Chief Justice The Hon’ble Mr. Justice Sandeep Sharma, Judge. Whether approved for reporting?[1] _________________________________________________ For the Appellant :Mr. Vinay Kuthiala, Senior Advocate with Ms. Vandana Kuthiala, Advocate. For the respondent Nemo. Surya Kant, Chief Justice (Oral) The instant Income Tax Appeal has been admitted to answer the following substantial questions of law: “(i) Whether on the facts and circumstances of the case, the Hon’ble ITAT, has erred in law to delete penalty u/s 271 (1) (c ) of the Income Tax Act, 1961 inspite of the fact that the assessee has made incorrect claim of deduction u/s 80IC of the Act for which it was not eligible. case, the Hon’ble ITAT, has erred in law to delete penalty u/s 271 (1) (c ) of the Income Tax Act, 1961 inspite of the fact that the assessee has made incorrect claim of deduction u/s 80IC of the Act for which it was not eligible. (ii) Whether on the basis of the facts and circumstances, the Hon’ble ITAT was right in law to delete penalty u/s 271 (1) (c) of the Income Tax Act 1961 in view of the decision of Apex Court in the case of Reliance Petroproducts 322 ITR 518 (S.C.) and the judgment passed by the Hon’ble Supreme circumstances, the Hon’ble ITAT was right in law to delete penalty u/s 271 (1) (c) of the Income Tax Act 1961 in view of the decision of Apex Court in the case of Reliance Petroproducts 322 ITR 518 (S.C.) and the judgment passed by the Hon’ble Supreme 1Whether the reporters of Local Papers may be allowed to see the judgment? Court on 20.08.2018 in Civil Appeal No. 7208/18 titled as CIT vs. M/s Classic Binding Industries.” 2. It may be seen from the above reproduced question that the issue sought to be raised pertains to the deletion of penalty under Section 271(1) (c) of the Income Tax Act, 1961. 3. It is an undisputed fact that the matter re: very quantum of tax liability stands decided in favour of the respondent-assessee by the Hon’ble Supreme Court in the lead case in Civil Appeal No. 1784 of 2019, titled as Pr. Commissioner of Income Tax, Shimla versus M/s Aarham Softronicsand other connected matters, decided on 20[th] February, 2019. 4. As a necessary corollary, the deletion of penalty by the ITAT would be fully justified and would leave no scope to raise any substantial question of law in this appeal. The same is accordingly disposed of. (Surya Kant) Chief Justice. April 11, 2019 (hemlata) (Sandeep Sharma) Judge.