Principal Commissioner Of Income Tax 2 v. Gruh Finance Ltd

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL No. 183 of 2018 ============================================================= PRINCIPAL COMMISSIONER OF INCOME TAX 2VersusGRUH FINANCE LTD. ============================================================= Appearance :Mr M.R BHATT, Sr Advocate with Mrs MAUNA M BHATT, Advocate for the PETITIONER ============================================================= CORAM:HONOURABLE Mr. JUSTICE AKIL KURESHIandHONOURABLE Mr. JUSTICE B.N. KARIA19[th] March 2018andHONOURABLE Mr. JUSTICE B.N. KARIA19[th] March 2018 ORAL ORDER(PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Ahmedabad dated 29[th] September 2017 raising the following question for our consideration :- “Whether the Appellate Tribunal has erred in law and on facts in deleting the penalty of Rs. 1,08,41,183/= under section 271 [1](c) of the Act as levied by the CIT [A] ?” As can be seen, the issue pertains to penalty under Section 271 [1](c) of the Income-tax Act, 1961 which the Tribunal had deleted. The quantum additions pertain to disallowance of interest expenditure under Section 14A of the Act read with Rule 8D of the Income-tax Rules, 1962. We do not find any evidence of assessee not disclosing the income or source of income which would give rise to penalty proceedings under Section 271[1](c) of the Act. The Tribunal, of course, has proceeded on somewhat different reasons, nevertheless, we see no reason to pursue further the penalty proceedings. Tax Appeal is dismissed. {Akil Kureshi, J.} Prakash {B.N Karia, J.}