2017 (1) TMI 1458 - HC - Income Tax

Penalty u/s 271(1)(c) - Held that - The issue arising herein is concluded against the Revenue by virtue of the decision of this Court in CIT v/s. Shri Samson Perinchery 2017 (1) TMI 1292 - BOMBAY HIGH COURT . In the above case, an identical issue on facts and law as arising herein came up for consideration in the respondent-assessee s husband s case. This Court refused to entertain the Revenue s appeal. No substantial question of law

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal under Section 260A for Assessment Year 2005-06; Deletion of penalty under Section 271(1)(c) of the Income Tax Act.

Analysis:
The judgment delivered by the High Court of Bombay pertains to an appeal challenging the order passed by the Income Tax Appellate Tribunal for the Assessment Year 2005-06 under Section 260A of the Income Tax Act, 1961. The primary issue raised by the Revenue in this case was regarding the deletion of a penalty amounting to ?2,70,460 under Section 271(1)(c) of the Act. The learned counsel for the appellant-revenue referred to a previous decision of the Court in CIT v/s. Shri Samson Perinchery, where a similar issue was considered, and the Court declined to entertain the Revenue's appeal. The counsel argued that the issue at hand was already settled against the Revenue based on the earlier decision.

The Court acknowledged that the issue in the present appeal was identical to the one addressed in the previous case of Shri Samson Perinchery, where it was held that the question raised did not present any substantial question of law. Both parties agreed that the reasoning provided in the earlier order was applicable to the current situation, and therefore, the question raised in the appeal did not warrant further consideration. Consequently, the Court dismissed the appeal, emphasizing that no costs were to be awarded in this matter.

In conclusion, the High Court of Bombay upheld the decision of the Income Tax Appellate Tribunal to delete the penalty imposed under Section 271(1)(c) of the Income Tax Act for the Assessment Year 2005-06. The Court based its ruling on the precedent set in a prior case with similar facts and legal considerations, where the appeal by the Revenue was not entertained. The judgment underscores the importance of consistency in legal decisions and the application of established principles to similar cases, leading to the dismissal of the current appeal without costs.