Full Judgment Text
NON-REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 1704 OF 2008
COMMR.OF INCOME TAX-XVIII, APPELLANT
DELHI
VERSUS
BANK OF NOVA SCOTIA RESPONDENT
J U D G M E N T
KURIAN, J.
1. The short issue pertains to the assessment of
penalty under Section 271-C of the Income Tax Act, 1961.
Against the order of Assessing Officer, the respondent took
up the matter in appeal and the Commissioner of Income Tax
(Appeals) deleted the levy of penalty.
JUDGMENT
2. The matter was pursued by the Revenue before the
Income Tax Appellate Tribunal. The Income Tax Appellate
Tribunal vide order dated 31.03.2006 entered the following
findings:
“11..We have carefully considered the rival
submissions. In the instant case we are not
dealing with collection of tax u/s 201(1) or
compensatory interest u/s 201(1A). The case of
the assessee is that these amounts have already
been paid so as to end dispute with Revenue. In
the present appeals we are concerned with levy of
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penalty u/s 271-C for which it is necessary to
establish that there was contumacious conduct on
the part of the assessee. We find that on similar
facts Hon'ble Delhi High Court have deleted levy
of penalty u/s 271-C in the cae of M/s. Itochu
Corporation, reported in 268 ITR 172 (Del) and in
the case of CIT Vs. Mitsui & Company Ltd. reported
in 272 ITR 545. Respectfully following the
aforesaid judgments of Hon'ble Delhi High Court
and the decision of the ITAT, Delhi in the case of
Television Eighteen India Ltd., we allow the
assessee's appeal and cancel the penalty as levied
u/s 271-C.”
3. Being aggrieved, the Revenue took up the matter before
the High Court of Delhi against the order of the Income Tax
Appellate Tribunal. The High Court rejected the appeal only
on the ground that no substantial question of law arises in
the matter.
4. On facts, we are convinced that there is no substantial
question of law, the facts and law having properly and
correctly been assessed and approached by the Commissioner of
Income Tax (Appeals) as well as by the Income Tax Appellate
Tribunal. Thus, we see no merits in the appeal and it is
JUDGMENT
accordingly dismissed. No costs.
………………………………………………J.
(KURIAN JOSEPH)
…………………………………………………………J.
(ROHINTON FALI NARIMAN)
New Delhi;
January 07, 2016
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