The Commissioner Of Income Tax – 3, Mumbai v. M/S.tridhara Investments Pvt. Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.4045 OF 2010 The Commissioner of Income Tax – 3, Mumbai ..Appellant. Versus M/s.Tridhara Investments Pvt. Limited..Respondent. Ms.Anamika Malhotra for the appellant.Mr.J.D. Mistri, Senior Advocate with Mr.P.C. Tripathi i/by Mr.Raj Darak for the respondent. CORAM : J.P. Devadhar & A.A. Sayed, JJ. P.C. : DATE : 4[th] August, 2011. 1.Whether 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. 2.The dispute in the present case was whether the income from property which was leased out on leave and licence basis was liable to be treated as ‘business income’ or ‘income from house property’. Merely because claim made by the assessee has been rejected, it could not be said that the assessee had concealed any particulars or furnished inaccurate particulars, so as to levy penalty under Section 271(1)(c) of the Income Tax Act, 1961. Accordingly, the Income Tax Appellate Tribunal had deleted the penalty. No fault can be found with the order of the Income Tax Appellate Tribunal. 3.The appeal is accordingly dismissed with no order as to costs. (J.P. Devadhar, J.)