The Commissioner Of Income Tax v. M/S.indus Engineering Co

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.426 OF 2008 The Commissioner of Income Tax ...Appellant Vs. M/s.Indus Engineering Co. ...Respondent Mr.A.S. Shivsharan for the Appellant. Mr. Ashok N. Kotangale with Mr. Arun D. Nagarjun, for the Respondent. CORAM: F.I.REBELLO &J.H. BHATIA, JJ.DATED: 13th April, 2009 CORAM: F.I. J.H. BHATIA, JJ. DATED: 13th April, 2009 P.C.: . Revenue is in appeal on the following question:- "Whether in the facts and circumstances of the case and in law, the Tribunal is right in canceling the penalty levied u/s.271(1)(c) of the I.T. Act 1961 of Rs.31,10,250/- imposed upon the Respondent.? Both the C.I.T. (A) and ITAT considering the facts held that the discrapancy in stock was not about quantity, but about valuation and in that context held that the order of the A.O. imposing penalty was a hard case and penalty ought not to have been imposed. Considering the finding of fact and exercise of discretion by the C.I.T. (A) and ITAT, in our opinion, this is not a fit case to interfere and consequently appeal dismissed. (J.H. BHATIA, J.) (F.I.REBELLO, J.) (J.H. BHATIA, J.) (F.I.REBELLO, J.)