PRINCIPAL COMMISSIONER OF INCOME TAX-I vs. AAKASH OIL SERVICE PVT LTD

Feeling aggrieved and dissatisfied by the impugned judgment and order passed by the learned Income Tax Appellate Tribunal (ITAT), Ahmedabad “B” Bench, Ahmedabad in ITA No.3071/Ahd/2015 for the Assessment Year 2011-2012, by which the learned Tribunal has deleted the penalty levied under Section 271(1)(c) of the Income Tax Act, 1961, the Revenue has preferred the present Appeal with the proposed question of law :- “Whether the Appellate Tribunal has erred in law and on facts in deleting the penalty of Rs.21,77,416/- levied u/s 271(1)(c) of the Act?” C/TAXAP/694/2018 ORDER

Heard learned Advocate Mrs. Mauna M. Bhatt appearing for the appellant – Revenue.

It is not in dispute that the learned Tribunal has deleted the penalty levied under Section 271(1)(c) of the Act on the ground that in the quantum Appeal, the Revenue has lost. It is reported that against the order passed by the learned Tribunal in a quantum Appeal, which was against the Revenue, the Revenue carried the matter before this Court, by way of Tax Appeal No.352/2018 and the Division Bench of this Court dismissed the Appeal preferred by the Revenue. Thus, in the quantum Appeal the Revenue has lost.

Under the circumstances, in a quantum Appeal, when the Revenue has lost and the decision of the Tribunal in deleting disallowance of excess depreciation claimed on truck and truck mounted equipments of Rs.64,06,050/= has been confirmed and as has been rightly observed by the learned Tribunal, that thereafter there is no question of levy of penalty under Section 271(1)(c) of the Act, no substantial question of law arises in the present Appeal. C/TAXAP/694/2018 ORDER

Therefore, the present Appeal deserves to be dismissed and is accordingly dismissed. (M.R. SHAH, J) (A.Y. KOGJE, J) Caroline