The Commissioner Of Income Tax-1 v. Chesterfield Trading Private Limited

KJ IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.478 OF 2010 The Commissioner of Income Tax-1 )..AppellantVs.Chesterfield Trading Private Limited )..Respondent---- )..Respondent Mr. Vimal Gupta for the appellant. Mr. P.R.Toprani for the respondent. ---- CORAM : J. P .DEVADHAR & MRS.MRIDULA BHATKAR,JJ DATE : 1/3/2011. PC 1Whether the Tribunal was justified in deleting the penalty levied under Section 271(1) (c) of the Income Tax Act 1961 is the question raised in this appeal. In the Assessment Year in question the assessee has taken the purchase price of the shares as on 31.3.1995 at Rs.45.61 per share. The Assessing Officer however, adopted the value at Rs.28.85 per share. In view of the wrong calculation made by the assessee, penalty was levied under Section 271(1)(c) of the Act. 2The Tribunal has recorded a finding of fact that the purchase price of the shares being not immediately available, the assessee valued shares on the basis of the report of Alcides Investments Co. Pvt. Ltd., who had shown the purchase price of the shares in question as on 31.3.1995 at Rs.45.61 per share. Even the share value is adopted by the assessing officer by taking average value and the shares. In these circumstances, the finding recorded by the Tribunal that there was no concealment and hence no penalty could be imposed is a reasonable and possible view. 3We do not find any fault with the reasoning given by the Tribunal. Accordingly, appeal is dismissed. (MRS.MRIDULA BHATKAR,J) (J.P.DEVADHAR,J)