The Commissioner Of Income Tax-8 v. M/S Capital Offshore Services P. Ltd Mumbai

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1077 OF 2012 The Commissioner of Income Tax-8 .. .. Appellant vs M/s Capital Offshore Services P. Ltd Mumbai .. Respondent Mr.Tejveer Singh for Appellant.Mr.Prakash Shah a/w Mr.A.K.Jasani for Respondent ... CORAM: S.C. DHARMADHIKARIAND G.S.KULKARNI, JJ. DATE :- 7th March,2014 PC: 1.Heard Mr.Tejveer Singh appearing for the Appellant. Perused the order passed by the Income Tax Appellate Tribunal allowing the appeal of the respondent-assessee. 2. The Commissioner of Income Tax (Appeals) upheld 'the order' of penalty to the tune of Rs.1,65,31,030/- imposed by the Assessing Officer under section 271 (1) (c) of the Income Tax Act, 1961. 3. In reversing these concurrent orders, the Tribunal found and as a matter of fact that the Respondent-assessee genuinely entertained the view that the expenses/allowances were allowable. That was based on legal position and as understood. Thereafter the Tribunal found that the authorities did not accept the claim and hence proceeded to impose penalty. This stand of the department/revenue in imposing penalty merely because it was in disagreement with the version of the assessee by itself and without 'anything more' could not be justification for imposing penalty. Such a finding of fact as rendered in para 5 of the order of the Tribunal does not give rise to any substantial question of law. 4. The Appeal is devoid of merits and is dismissed. (G.S.KULKARNI J.) (S.C. DHARMADHIKARI, J.)