The Commissioner Of Income Tax – 7, Mumbai v. M/S.savani Financials Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2458 OF 2009 The Commissioner of Income Tax – 7, Mumbai ..Versus ....Appellant...........Respondent. M/s.Savani Financials Limited Mr.Suresh Kumar for the appellant. Mr.Pankaj R. Toprani for the respondent. CORAM : Dr.D.Y. Chandrachud & J.P. Devadhar, JJ. DATE : 7[th] January, 2010. P.C. : 1.The Income Tax Appellate Tribunal has relied upon the judgment of the Supreme Court in Virtual Soft Systems Limited V/s. Commissioner of IncometAx [ 289 ITR 93]while setting aside the penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961. Since the judgment of the Supreme Court in Virtual Soft Systems has been over-ruled in Commissioner of Income Tax V/s. Gold CoinHealth Food Private Limited [ 304 ITR 308], it would be appropriate to remand the proceedings to the Tribunal for a fresh decision on merits. Both the learned counsel for the revenue and the learned counsel appearing on behalf of the assessee have agreed to this course of action being followed. 2.In these circumstances, the impugned order of the Tribunal dated 17[th ]June 2008 is set aside by consent and the proceedings are remanded back to the Tribunal for a fresh decision on merits. The Appeal is according disposed of. No order as to costs. (J.P. Devadhar, J.)(Dr.D.Y. Chandrachud, J.)