Pricipal Commissioner Of Income Tax, Gandhinagar v. Appearance

C/TAXAP/523/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 523 of 2018 ========================================================== PRICIPAL COMMISSIONER OF INCOME TAX, GANDHINAGARVersusSURESHCHANDRA M SHAH========================================================== Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1========================================================== CORAM: HONOURABLE MR.JUSTICE AKIL KURESHIandHONOURABLE MR.JUSTICE B.N. KARIA Date : 11/06/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1.Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 22.11.2017 raising following question for our consideration: “Whether the Appellate Tribunal has erred in law and on facts the case in deleting the penalty of Rs.21,77,147/- levied by the Assessing Officer u/s 271(1)(c) of the Act?” 2.The issue pertains to penalty under section 271(1)(c) of the Income Tax Act, 1961 ('the Act' for short), which the Assessing Officer imposed but which the Tribunal eventually deleted. 3.The assessee had made investment in Kisan Vikas Patra and also shown the same in the balance-sheet. The assessee had however not offered the interest accruing on such investment for tax. The explanation of the assessee was that Kisan Vikas Patra was his capital asset and the gain would be offered to tax after indexation at the time of encashment. The Assessing Officer did not accept this explanation and taxed the interest and also, as noted, imposed penalty. 4.In relation to penalty, the Tribunal however observed that the assessee had furnished all necessary particulars pertaining to income. This was not a case where inaccurate particulars of income were provided. Though not so observed in so many words, the Tribunal also seem to be leaning in favour of the view that the explanation of the assessee was not totally unjustified. 5.No question of law arises. Tax Appeal is dismissed. (AKIL KURESHI, J) (B.N. KARIA, J)