The Commissioner Of Income Tax – 4, Mumbai v. M/S.jinesh Chemicals Private Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1797 OF 2011 The Commissioner of Income Tax – 4, Mumbai..Appellant. Versus M/s.Jinesh Chemicals Private Limited..Respondent. Mr.Vimal Gupta, Senior Advocate with Mr.Suresh Kumar for the appellant.Mr.Dipak Trasawala with Mr.V.S. Hadade for the respondent. CORAM : J.P. Devadhar &M.S. Sanklecha, JJ. DATE : 15[th] February 2013 P.C. : 1.In this appeal by the Revenue for assessment year 2005-06, following question of law has been raised for our consideration. “Whether on the facts and in the circumstances of the case and in law the Tribunal was justified in deleting the penalty amounting to Rs.5,05,110/- levied by the assessing officer under Section 271(1)(c) of the Income Tax Act, 1961 being 100% of the tax sought to be evaded by the assessee – company ?” 2.The Tribunal by the impugned order has deleted the penalty under Section 271(1)(c) of the Income Tax Act, 1961. The respondent – assessee had incorrectly claimed the benefit of Section 80IB of the Act and thus the penalty proceedings were commenced. However, immediately after making a claim for the benefit of Section 80IB, the respondent – assessee withdrew its claim and also paid the additional tax payable. 3.In identical circumstances, penalty proceedings initiated against the respondent – assessee under Section 271(1)(c) of the Act for the assessment year 2004-05 was dropped by the assessing officer. In view of the above, we see no reason to interfere with the order of the Tribunal deleting the penalty imposed on the respondent – assessee. 4.Accordingly, the appeal is dismissed with no order as to costs. (M.S. Sanklecha, J.) (J.P. Devadhar, J.)