2016 (7) TMI 61 - HC - Income Tax

Penalty levied under Section 271 (1)(c) - difference between the amount paid in advance as the net present value of the actual sales tax liability and the actual liability - Held that - the Tribunal was justified in deleting the penalty levied under Section 271 (1)(c) on the amount being the difference between the amount paid in advance as the net present value of the actual sales tax liability and the actual liability, based on the fact that the Tribunal had deleted the quantum - Question not to be entertained Penalty levied under Section 271(1)(c) - claim under Section 80M disallowed - Held that - Tribunal was justified deleting the penalty levied under Section 271(1)(c) on the disallowed claim under Section 80M on the basis of the fact that this quantum disallowance was deleted by the Hon ble Tribunal - No substantial question of law.

Summary

Issues:
1. Challenge to order of Income Tax Appellate Tribunal for Assessment Year 2003-04.
2. Justification of penalty deletion under Section 271(1)(c) for difference in sales tax liability.
3. Justification of penalty deletion under Section 271(1)(c) for disallowed claim under Section 80M.

Analysis:

Issue 1:
The appeal challenges the Income Tax Appellate Tribunal's order for Assessment Year 2003-04. The questions of law raised pertain to the deletion of penalties under Section 271(1)(c) for discrepancies in sales tax liability and disallowed claims under Section 80M.

Issue 2:
Regarding the first question, the Tribunal deleted the penalty under Section 271(1)(c) based on a previous order in quantum proceedings for the same assessee. The revenue's appeal against the quantum proceedings decision was dismissed by the Court, thus upholding the Tribunal's penalty deletion. The issue is considered concluded in favor of the revenue based on the Court's decision in another case.

Issue 3:
Concerning the second question, the penalty under Section 271(1)(c) was imposed due to disallowance of the respondent assessee's claim under Section 80M. The Tribunal upheld the deletion of the penalty based on a previous order in quantum proceedings, following a decision in another case. The revenue's appeal on this issue was also dismissed by the Court, concluding the matter in favor of the respondent assessee.

In conclusion, the appeal is dismissed, and no costs are awarded. The Court did not entertain the questions raised as the issues were considered concluded based on previous decisions and judgments.