In Appeal No. 478 of 2010, the High Court upheld the Tribunal's decision deleting a penalty for wrong calculation of share purchase price. The court found the Tribunal's conclusion of no concealment was a reasonable and possible view.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION
KJ
INCOME TAX APPEAL NO.478 OF 2010
The Commissioner of Income Tax-1 )..Appellant Vs. Chesterfield Trading Private Limited )..Respondent ----
Mr. Vimal Gupta for the appellant.
Mr. P.R.Toprani for the respondent.
CORAM : J. P .DEVADHAR & MRS.MRIDULA BHATKAR,JJ
DATE : 1/3/2011.
PC
levied under Section 271(1) (c) of the Income Tax Act 1961 is the question raised in this appeal. In the Assessment Year in question
the assessee has taken the purchase price of the shares as on 31.3.1995 at Rs.45.61 per share. The Assessing Officer however,
adopted the value at Rs.28.85 per share. In view of the wrong calculation made by the assessee, penalty was levied under Section
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271(1)(c) of the Act.
2 The Tribunal has recorded a finding of fact that the purchase price of the shares being not immediately available, the assessee valued shares on the basis of the report of Alcides Investments Co. Pvt. Ltd., who had shown the purchase price of the shares in question as on 31.3.1995 at Rs.45.61 per share. Even the share value is adopted by the assessing officer by taking average value and the shares. In these circumstances, the finding recorded by the Tribunal that there was no concealment and hence no penalty could be imposed is a reasonable and possible view.
3 We do not find any fault with the reasoning given by the Tribunal. Accordingly, appeal is dismissed.
(MRS.MRIDULA BHATKAR,J) (J.P.DEVADHAR,J)
1 issue framed by the court
Whether the Income Tax Tribunal was justified in deleting the penalty levied under Section 271(1)(c) of the Income Tax Act 1961.
1 provisions across 1 enactments
Commissioner of Income Tax-1
Chesterfield Trading Private Limited
J. P. Devadhar
Mrs. Mridula Bhatkar
As recorded by the court registry
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