PRINCIPAL COMMISSIONER OF INCOME TAX 2 vs. GUJARAT LEASE FINANCING LTD.

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TAXAP/1048/2018HC GujaratGJHC24046502201821 August 2018Author: HONOURABLE MR. JUSTICE AKIL KURESHI,HONOURABLE MR. JUSTICE B.N. KARIA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Revenue's appeal. The reasoning provided is that the assessee had succeeded on the quantum additions, and the Revenue's appeal relating to those quantum additions had already been dismissed by the High Court. Therefore, in light of the assessee's success on the substantive additions, the appeal against the deletion of the penalty under Section 271(1)(c) was also dismissed. The operative direction is the dismissal of the Tax Appeal. No issue was expressly left undecided.

What were the facts?

The Revenue, represented by the Principal Commissioner of Income Tax 2, is in appeal against an order of the Income Tax Appellate Tribunal (ITAT), Ahmedabad, dated February 27, 2018. The appeal concerns the deletion of a penalty imposed under Section 271(1)(c) of the Income-tax Act, 1961. The assessee is Gujarat Lease Financing Ltd. The judgment notes that the assessee had succeeded on the quantum additions, and the Revenue's appeal concerning those quantum additions (Tax Appeal No. 1028 of 2018) had been dismissed by the High Court. The present appeal arises from the ITAT's decision to delete the penalty.

What were the issues?

1. Whether the Appellate Tribunal has erred in law and on facts in deleting the penalty under Section 271(1)(c) of the Income-tax Act, 1961? The Revenue's contention is that the ITAT erred in deleting the penalty. The judgment does not record specific arguments from the assessee regarding this issue, other than implicitly supporting the ITAT's deletion. The core of the dispute revolves around the validity of the penalty imposed under Section 271(1)(c) following the outcome of the quantum additions.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/1048/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL No. 1048 of 2018 ============================================================= PRINCIPAL COMMISSIONER OF INCOME TAX 2 Versus GUJARAT LEASE FINANCING LTD. ============================================================= Appearance : Mrs MAUNA M BHATT, Advocate for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ============================================================= CORAM: HONOURABLE Mr. JUSTICE AKIL KURESHI and HONOURABLE Mr. JUSTICE B.N. KARIA 21st August 2018 ORAL ORDER (PER : HONOURABLE Mr. JUSTICE AKIL KURESHI) Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal, Ahmedabad [“Tribunal” for short] dated 27th February 2018, raising the following question for our consideration. “Whether the Appellate Tribunal has erred in law and on facts in deleting the penalty under Section 271 [1](c) of the Income-tax Act, 1961 ?” Issue pertains to penalty imposed by the Assessing Officer under Section 271 [1] (c) of the Income-tax Act, 1961. We are Page 1 of 2

informed that on quantum additions, the assessee had succeeded. The High Court also has dismissed Revenue’s Tax Appeal No. 1028 of 2018 relateable to the quantum additions.

In that view of the matter, this Tax Appeal is dismissed. [Akil Kureshi, J.] [B.N Karia, J.] Prakash

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