2019 (6) TMI 933

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..... e before the Supreme Court. Pendency of the S.L.P. before the Supreme Court by itself would not be the reason to admit this appeal. Since the quantum addition has been deleted by this Court in the case of C.I.T. vs. G.I.D.C, the penalty being consequential would not survive. We see no good reason to admit this appeal. The Tribunal cannot be said to have committed any error in passing the impugned order. - Decided against revenue
MR J. B. PARDIWALA AND MR A. C. RAO, JJ. For The Appellant (s) : MRS MAUNA M BHATT (174) For The Opponent (s) : None ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1 This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act 1961") is at the instance of the Revenue and is d .....

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..... ation 83 taxmann.com 366 (Gujarat). The Ld. counsel for the assessee pointed out that the assesseecorporation was constituted under the provisions of Gujarat Industrial Development Act, 1962 for the purpose of securing and assessing rapid and orderly establishment and organization of industrial Areas and industrial estates in the State of Gujarat. The assessee was granted registration under section 12A of the Income Tax Act and it was recognised as a charitable institution. The Ld. AO took cognizance of the proviso appended to section 2(15) of the Act wherein definition of "charitable purpose" has been provided. He held that activities of the assessee were out of the purview of section 2(15), as the assessee was carrying out advancement of .....

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..... benefits under section 11 and 12, consequently addition on which Impugned penalty was imposed stands eliminated. We find that 5ubclause (iii) of section 271(1)(c) provides mechanism for quantification of penalty. It contemplates that the assessee would be directed to pay a sum in addition to taxes, if any, payable by him, which shall not be less than the addition but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of income or furnishing of inaccurate particulars of income. In other words, the quantification of the penalty is depended upon the addition made to the income of the assessee. In the instant case addition stands deleted by order of the Hon'ble Gujarat High Court cited supra, ther .....

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