COMMISSIONER OF INCOME TAX DELHI I vs. AMBASSADOR TRAVELS P. LTD.

ITA - 327 / 2008HC Delhi23 April 20081 pages

For Petitioner: PREM LATA BANSAL

AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises in the appeal concerning penalty proceedings, as the appeal is predicated on the quantum issue. The court noted that the quantum appeal, which was against the order of the Income Tax Appellate Tribunal, had already been dismissed by the High Court in favour of the Assessee. Since the present appeal concerning penalty proceedings was based on this quantum issue that was decided against the Revenue, the appeal was dismissed. The ratio decidendi is that if the foundation of a penalty proceeding (the quantum addition) is set aside or decided against the Revenue, the penalty appeal itself may not raise a substantial question of law.

What were the facts?

This appeal arises from penalty proceedings initiated against the Assessee, Ambassador Travels P. Ltd. The Revenue, Commissioner of Income Tax, is the appellant, and the Assessee is the respondent. The appeal is filed against an order passed by the Income Tax Appellate Tribunal (ITAT). The High Court notes that the quantum appeal, which formed the basis for the penalty proceedings, has already been dismissed by the High Court in favour of the Assessee. Consequently, the present appeal concerning the penalty proceedings is also based on this decided quantum issue.

What were the issues?

1. Whether a substantial question of law arises in an appeal concerning penalty proceedings when the underlying quantum appeal has been decided against the Revenue. This issue turns on the interplay between penalty provisions and the determination of income. The Revenue's contention, implied by the nature of the appeal, is that penalty proceedings are distinct and can be pursued even if the quantum appeal is decided against them. The Assessee's position, as indicated by the High Court's decision, is that the penalty appeal is contingent on the quantum appeal. The judgment does not explicitly record arguments from either side for this specific issue, but the court's reasoning addresses it.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 327/2008 . . COMMISSIONER OF INCOME TAX ..... Appellant . . Through Mrs. P.L. Bansal, Adv. . versus . . AMBASSADOR TRAVELS P. LTD. ..... Respondent Through Mr. Prakash Kumar, Adv. . CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE MANMOHAN SINGH . . O R D E R 23.04.2008 . . This appeal arises out of penalty proceedings initiated against the Assessee. Insofar as the quantum appeal is concerned, we have dismissed the appeal of the Revenue against the order passed by the Income Tax Appellate Tribunal. Since the present appeal is based on the quantum issue, which has been decided against the Revenue, no substantial question of law arises in this ITA No. 327/2008 Page 1 of 2 appeal arising out of penalty proceedings. Dismissed. . . MADAN B. LOKUR, J . . . MANMOHAN SINGH, J APRIL 23, 2008 vk . . . . . . . . . . . . . . . ITA No. 327/2008 Page 2 of 2

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