The Commissioner Of Income Tax-I v. M/S California Design & Construction Inc India Ltd

ITA No. 554 of 2009 (O&M) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 554 of 2009 (O&M) Date of Decision: 4.4.2011 The Commissioner of Income Tax-I ....Appellant. Versus M/s California Design & Construction INC India Ltd. ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Ms. Urvashi Dhugga, Senior Standing Counsel,for the appellant.for the appellant. Mr. M.R. Sharma, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1.Delay in refiling the appeal is condoned. 2.This appeal has been filed by the revenue under Section260A of the Income Tax Act, 1961 (in short “the Act”) against the orderdated 27.11.2008 passed by the Income Tax Appellate Tribunal,Chandigarh Bench “A”, Chandigarh (hereinafter referred to as “theTribunal”) in ITA No. 436/Chandi/2008, relating to the assessment year2002-03, raising the following substantial question of law:- “Whether on the facts and in the circumstances ofthe case the Hon'ble ITAT is justified in law indeleting the penalty imposed u/s 271(1)(c) of theIncome-tax Act, 1961, especially since the assessee had deliberately not furnished its return of income?” 3.In view of the common order passed in ITA Nos. 400 and555 of 2009(The Commissioner of Income Tax-I Vs. M/s CaliforniaDesign & Construction INC India Ltd.) whereby the appeals havebeen allowed and the matter has been remanded to the Tribunal todecide the same afresh in accordance with law, the order impugned inthis appeal quashing the penalty under Section 271(1)(c) of the Act, isalso set aside and the present appeal is allowed. The matter isremanded to the Tribunal to decide the same on merits in accordancewith law. (AJAY KUMAR MITTAL) JUDGE April 4, 2011gbs (ADARSH KUMAR GOEL) JUDGE