CIT Vs Aaspas Investment Pvt. Ltd. (Gujarat High Court)
Material Facts
The Revenue filed appeals under Section 260A of the Income Tax Act, 1961 read with Section 21 of the Interest Tax Act, 1974 against a common order of the Income Tax Appellate Tribunal for Assessment Years 1996-97 to 2000-01.
The dispute concerned whether the Tribunal was justified in confirming the order of the Commissioner of Income Tax (Appeals) [CIT(A)] deleting penalty levied under Section 13 of the Interest Tax Act, 1974.
A notice under Section 10 of the Interest Tax Act was issued requiring the assessee to furnish returns for the relevant assessment years. The assessee responded that it was not liable to tax under the Interest Tax Act. Thereafter, notice under Section 8(1) was issued and the assessee filed returns on 26.02.2003. The Assessing Officer completed assessments under Section 8(2) read with Section 10 by accepting the returned chargeable interest without making any additions or deductions.
Subsequently, the Assessing Officer levied penalty under Section 13 of the Interest Tax Act after obtaining the approval of the Additional CIT.
Procedural History
The assessee appealed before the CIT(A).
The CIT(A) deleted the penalty after observing that:
- the details relating to interest income were already available in the assessment records;
- the assessee had consistently explained that it was not liable to Interest Tax;
- there was no mala fide intention;
- the returns filed under the Interest Tax Act had been accepted without modification; and
- there was no concealment.
The Tribunal dismissed the Revenue’s appeal and upheld the CIT(A)’s order.
