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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.

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  accordingly dismissed. No costs.

 ………………………………………………J.           (KURIAN JOSEPH)

…………………………………………………………J.          (ROHINTON FALI NARIMAN)

New Delhi; January 07, 2016                                      

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