2009 (1) TMI 401 - HC - Income Tax

Penalty under section 271(1)(c) Levy of penalty set aside by the Tribunal Appeal of department against order deleting additions pending Held that, If ultimately the appeal preferred by the Revenue, pending is allowed, then and then only the question of levy of penalty under section 271(1)(c) of the Act, would arise.

Summary

The High Court of Karnataka, consisting of judges Deepak Verma and K. Ramanna, delivered a judgment in 2009 regarding an appeal by the Revenue under section 260A of the Income-tax Act, 1961. The appeal was against an order by the Income-tax Appellate Tribunal for the assessment year 1999-2000. The Tribunal had dismissed the appeal by the Revenue on the grounds that the additions made in respect of capital gains were deleted, thus justifying the removal of the penalty under section 271(1)(c) of the Act. The Tribunal found no grounds to interfere with the order passed by the Commissioner of Income-tax (Appeals). The court noted that a pending appeal, I. T. A. No. 1152 of 2006, would determine the question of levy of penalty under section 271(1)(c) of the Act. The judges decided to grant liberty to the appellants to invoke the penalty provision in case of a successful appeal in I. T. A. No. 1152 of 2006. The appeal was finally disposed of with these directions.