COMMISSIONER OF INCOME TAX vs. INDIAN OIL PANIPAT POWER CONSORTIUM LTD

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ITA - 1483 / 2010HC Delhi28 September 20102 pages
For Petitioner: SANJEEV SABHARWAL
AI SummaryDismissed

What did the High Court hold?

The High Court held that since the quantum appeals concerning the Assessment Years 2001-02 and 2002-03 had already been dismissed by the Court, the present appeals challenging the imposition of penalty under Section 271(1)(c) of the Income Tax Act, 1961, were consequently dismissed. The reasoning was that the penalty is consequential to the assessment of income, and if the assessment itself is not upheld (as indicated by the dismissal of quantum appeals), then the penalty cannot stand. No order as to costs was made. The judgment did not expressly leave any issue undecided.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (Revenue) under Section 260A of the Income Tax Act, 1961, challenging a common order dated September 29, 2009, passed by the Income Tax Appellate Tribunal (Tribunal). The Tribunal's order pertained to ITA Nos. 3366/Del/2009 and 3367/Del/2009, relating to Assessment Years 2001-02 and 2002-03. The appeals before the High Court concerned the imposition of penalty under Section 271(1)(c) of the Act. The Revenue's counsel conceded that the quantum appeals for these assessment years had already been dismissed by the High Court on February 26, 2009, in ITA Nos. 1156 & 1157/2007.

What were the issues?

1. Whether the appeals challenging the imposition of penalty under Section 271(1)(c) of the Income Tax Act, 1961, are maintainable when the underlying quantum appeals have already been dismissed. The Revenue argued that since the quantum appeals were dismissed, the penalty appeals must also be dismissed. The Assessee (Indian Oil Panipat Power Consortium Ltd.) did not present any arguments as none were recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

#12,11 $~ * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 1483/2010

THE COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr. Sanjeev Sabharwal, Advocate

versus

INDIAN OIL PANIPAT POWER CONSORTIUM LTD.

..... Respondent

Through: None

AND

+ ITA 1482/2010

THE COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr. Sanjeev Sabharwal, Advocate

versus

INDIAN OIL PANIPAT POWER CONSORTIUM LTD.

..... Respondent

Through: None

Date of Decision: 28th September, 2010

CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN

1.

Whether the Reporters of local papers may be allowed to see the judgment? No 2. To be referred to the Reporter or not?

3.

Whether the judgment should be reported in the Digest?

MANMOHAN, J

1.

Present appeals have been filed under Section 260A of Income 2010:DHC:4855-DB

Tax Act, 1961 (in short „the Act‟) challenging the common order dated 29th September, 2009 passed by the Income Tax Appellate Tribunal (in short “Tribunal”) in ITA Nos. 3366/Del/2009 and 3367/Del/2009, for the Assessment Years 2001-02 and 2002-03 respectively. 2. Mr. Sanjeev Sabharwal, learned counsel for Revenue fairly submitted at the Bar that the present two appeals pertain to imposition of penalty under Section 271(1)(C) of the Act and the quantum appeals with regard to these assessment years have already been dismissed by this Court vide order dated 26th February, 2009 in ITA Nos. 1156 & 1157/2007. 3. Since the quantum appeals have already been dismissed, the present appeals challenging imposition of penalty have to be and are accordingly dismissed but without any order as to costs.

MANMOHAN, J

CHIEF JUSTICE SEPTEMBER 28, 2010 ng 2010:DHC:4855-DB

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