The Commissioner Of Income Tax-8 v. M/S.garware Industries Ltd

bsb IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1057 OF 2012 The Commissioner of Income Tax-8 … Appellant v/s M/s.Garware Industries Ltd. … Respondent Mr.Tejveer Singh for the appellant. Mr.P.J. Pardiwala a/with Mr.A.K. Jasani for the respondent. CORAM: S.C. DHARMADHIKARI & G.S. KULKARNI, JJ. DATED : 6TH MARCH, 2014 P. C. : 1The Income Tax Tribunal has upheld the order of the Commissioner of Income Tax (Appeals) refusing to set aside imposition of penalty. 2The reasons assigned by the Tribunal are that the assessee was following legal advise and acting bonafide. The assessee clarified during the course of proceedings itself that he made a mistake of claiming the unabsorbed depreciation, that was because of the advise of the expert. The depreciation was not allowed in the earlier year. The assessee also following this information filed a wrong return. In such circumstances, the Tribunal accepted the explanation that the assessee was raising the claim bonafide and in any event under a wrong legal advise. In such circumstances, the ingredients enabling the authority to levy penalty cannot be held to be satisfied. This is essentially a finding of fact and based on which the penalty imposed has been set aside. We do not find that in allowing the assessee's appeal and rejecting the explanation of the revenue there is any contravention of law. Equally, the finding recorded cannot be said to be perverse. It is consistent with the material produced. In these circumstances, the Tribunal has rightly reversed the order of the Income Tax Commissioner (Appeals). There is no substantial question of law raised for our consideration. The appeal is, therefore, dismissed. (G.S. KULKARNI, J.) (S.C.DHARMADHIKARI, J.)