The Revenue officers must realize that just like other powers a executive power conferred in them is in the nature of a Trust. They hold office as trustees of the public at large. They deal with public revenue and public money and that cannot be wasted in such frivolous litigation. We, therefore, dismiss these appeals with costs quantified at Rs.1,00,000/ each. Costs shall be paid to the Maharashtra State Legal Services Authority, Mumbai within a period of four weeks from today.
HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO. 424 OF 2012 , 425 OF 2012, 483 OF 2012
The Commissioner of Income Tax
Vs.
M/s. Larsen and Toubro Ltd
CORAM :
S.C. DHARMADHIKARI &
B.P. COLABAWALLA, JJ.
DATE : JULY 10, 2014.
P. C.:
When these matters were called out, one of us (Justice B. P. Colabawalla), indicated to both the Assessee and Revenue that he holds shares of Assessee M/s. Larsen and Toubro Ltd, but both the sides fairly stated that the matter may not be removed from our Board. There is no need for Justice B. P. Colabawalla to recuse himself from this matter. It is on that agreed understanding and basis that we have heard both sides.
2. Having heard Mr. Suresh Kumar at some length and perusing with his assistance the orders passed in these Appeals by the Tribunal, we are of the opinion that the Revenue appeal is liable to be dismissed.
3. Imposition of penalty under Section 271(1)(c) of the I. T. Act has been set aside by the Tribunal in all these matters on the findings of fact that merely because the Assessee raised a claim which was eventually disallowed, does not mean that ingredients of clause(c) are satisfied or fulfilled so as to justify imposition of penalty.
4. In doing so, the Tribunal merely followed the dictum of the Hon’ble Supreme Court in several decisions and in the case of Commissioner of Income Tax v/s Reliance Petro products Pvt Ltd reported in 322 ITR 158(SC). The penalty has been therefore rightly deleted.
