Principal Commissioner Of Income-Tax Vadodara - I v. Samir Suryakant Sheth

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL No. 555 of 2018 ============================================================== PRINCIPAL COMMISSIONER OF INCOME-TAX VADODARA - IVersusSAMIR SURYAKANT SHETH ============================================================== Appearance :Mr. VARUN K. PATEL, Advocate for the PETITIONER for the RESPONDENT ============================================================== CORAM:HONOURABLE Mr. JUSTICE AKIL KURESHIandHONOURABLE Mr. JUSTICE B.N. KARIA13[th] June 2018 andHONOURABLE Mr. JUSTICE B.N. KARIA13[th] June 2018 ORAL ORDER(PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Ahmedabad dated 27[th] June 2017, raising the following questions for our consideration : [A]“Whether in the facts and circumstances of the case, the Tribunal has erred in law and on facts in deleting the penalty of Rs. 1,28,78,000/= levied under Section 271 [1](c) of the Income-tax Act with respect to addition of Rs. 6,43,60,000/= on account of capital gain wrongly claimed as exempt by the assessee? ” [B]“Whether in the facts and circumstances of the case, the Tribunal has erred in law and on facts in deleting the penalty of Rs. 1,28,78,000/= levied under Section 271 [1](c) of the Income Tax Act without appreciating that the assessee had not offered the amount of tax on the basis of artifical dispute with mala fide intention and mere disclosure in notes did not protest the assessee from penal action provided under Section 271 [1](c) of the Income Tax Act ?” Issue pertains to penalty. Quantum additions have been confirmed upto the stage of the Tribunal. The Department desired to levy penalty from the assessee. The Tribunal, however, deleted the penalty principally on the ground that the full disclosures were made and the issue was not free from doubt. In the opinion of the Tribunal, thus, the claim was not free from doubt or devoid of any basis. We further notice that the assessee in addition to having made full disclosure, also claimed that he had been under legal advice. The Tribunal also noted that even in quantum additions, the appeal is entertained by the High Court and is pending. No question of law arises. Tax Appeal is dismissed. Prakash [Akil Kureshi, J.][B.N Karia, J.]