Prin. Commissioner Of Income Tax v. Artistic Stone Pvt Ltd

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 935 of 2017 ============================================================= PRIN. COMMISSIONER OF INCOME TAXVersusARTISTIC STONE PVT LTD ============================================================= Appearance :Mr NIKUNT RAVAL for Mrs KALPANAK RAVAL for the PETITIONER(s) No. 1Mrs MAUNA M BHATT for the PETITIONER(s) No. 1============================================================= CORAM:HONOURABLE Mr. JUSTICE AKIL KURESHIand HONOURABLE Mr. JUSTICE B.N. KARIA26[th] February 2018 and HONOURABLE Mr. JUSTICE B.N. KARIA26[th] February 2018 ORAL ORDER(PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Ahmedabad Bench [“Tribunal” for short] dated 28[th] April 2017 raising following question for our consideration : “Whether on the facts and in circumstances of the case, the Appellate Tribunal is justified in dismissing the appeal of the Revenue thereby deleting the penalty levied under Section 271 [1](c) on the ground that the quantum addition has been deleted even though the quantum addition involved in this assessment year has not been subject matter of the appeal before the Appellate Tribunal ?” Issue pertains to penalty imposed by the Assessing Officer, but upheld by the CIT [A] which was confirmed by the Tribunal. Counsel for the Revenue submitted that the Tribunal committed an error in observing that the quantum additions have been deleted, and therefore, penalty also should be deleted. In the present case, the assessee had not challenged quantum addition in appeal at all. However, noticing that the Tribunal had by a common judgment set aside several appeals, some of them concerning assessee’s appeal on quantum, the Tribunal found that the Revenue was incorrect in making additions and disallowances. It was this portion of the order which the Tribunal perhaps referred to, while dealing with Revenue’s appeal against penalty. May be, for the current year, the assessee may not have taken quantum additions in appeal, nevertheless, when on identical grounds for other years the Tribunal had deleted additions, surely there would be no case for penalty. In the result, Tax Appeal is dismissed. [Akil Kureshi, J.] [B.N Karia, J.]