The Commissioner Of Income Tax – 3, Mumbai v. Gujarat Ambuja Cements Limited, Mumbai

agk IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.5988 OF 2010 The Commissioner of Income Tax – 3, Mumbai..Appellant. Versus Gujarat Ambuja Cements Limited, Mumbai..Respondent. Mr.Suresh Kumar for the appellant.Mr.Niraj Seth with Mr.Atul K Jasani for the respondent. CORAM : J.P. Devadhar &M.S. Sanklecha, JJ. DATE : 22[nd] October 2012 P.C. : 1.Whether the Income Tax Appellate 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. 2.The addition of Rs.2.14 crores was made by re-opening the assessment for assessment year 1996-1997. On appeal filed by the assessee, the Income Tax Appellate Tribunal has held that the re-opening of the assessment is bad-in-law and accordingly deleted the addition of Rs.2.14 crores. The appeal filed by the Revenue, being Income Tax Appeal No.6195 of 2010, to challenge the decision of the Income Tax Appellate Tribunal insofar as it relates to the re-opening of the assessment and consequent deletion of the addition of the amount of Rs.2.14 crores has not been entertained by this Court. Thus, on account of the re-assessment proceedings being declared invalid, the decision of the Income Tax Appellate Tribunal in deleting the quantum addition have attained finality. 3.Once the quantum additions stand deleted, sustaining the penalty imposed under Section 271(1)(c) does not survive. Accordingly, the appeal is dismissed with no order as to costs. (M.S. Sanklecha, J.) (J.P. Devadhar, J.)