The Commissioner of Income-tax, Tamil Nadu-VI, Madras v. A.Y. Prabhakar
[Citation -2015-LL-0224-13]

Citation 2015-LL-0224-13
Appellant Name The Commissioner of Income-tax, Tamil Nadu-VI, Madras
Respondent Name A.Y. Prabhakar
Court HIGH COURT OF MADRAS
Relevant Act Wealth-tax
Date of Order 24/02/2015
Assessment Year 1985-86
Judgment View Judgment
Keyword Tags net wealth • waiver of penalty • immovable property
Bot Summary: 1427, 1429, 1432 to 1435/Mds/1993 on the file of the Income Tax Appellate Tribunal, Madras 'D' Bench for the assessment years 1985-86 to 1990-91. For Appellant : Mr.M.Swaminathan 2 Standing Counsel for Income Tax For Respondents : Mr.R.Sivaraman COMMON JUDGMENT The above Tax Case are filed by the Revenue as against the order of the Income Tax Appellate Tribunal deleting the penalty levied by the Assessing Authority in respect of the assessment years 1985-86 to 1990-91. It is submitted by the learned counsel appearing for the assessee that as against the order passed by the Tribunal in favour of the assessee in respect of the merits of the case, namely, quantum appeal, the Revenue has not filed any appeal and hence, the order of the Tribunal had become final. It is seen from the order of the Tribunal that the Revenue 3 has filed the appeals before the Tribunal challenging the deletion of penalty alone in respect of the property at Anna Nagar. The Tribunal came to the conclusion that in the quantum appeal, the Tribunal deleted the addition made in respect of the property at Anna Nagar on the ground that the same cannot be included in the net wealth of the assessee. For better clarity, the findings of the Tribunal read as follows: 3. In the light of the above, when the additions have been deleted by the Tribunal and the same has not been challenged by the Revenue, there is no basis to sustain the levy of penalty levied under Section 18(1)(c) of the Wealth Tax Act.


IN HIGH COURT OF JUDICATURE AT MADRAS DATED: 24.02.2015 CORAM: HONOURABLE MR.JUSTICE R.SUDHAKAR and HONOURABLE MR.JUSTICE R.KARUPPIAH Tax Case (Appeal) Nos.376 to 381 of 2005 Commissioner of Income Tax Tamil Nadu - VI, Madras. .. Appellant in above T.C.s versus 1. Sri. A.Y. Prabhakar, (died) 51, 3rd Main Road, Gandhi Nagar, Adayar, Chennai - 600 020 2. Raghunandan Prabhakar 3. Ravi Prabhakar (LRs substituted vide order dated 24.02.2015 in M.P.Nos.1 of 2015 (6Nos.) .. Respondents in above T.Cs PRAYER: Tax Case Appeals filed under Section 27 of Wealth Tax Act, 1957 as against order dated 12.01.2004 made in W..T.A..Nos.1427, 1429, 1432 to 1435/Mds/1993 on file of Income Tax Appellate Tribunal, Madras 'D' Bench for assessment years 1985-86 to 1990-91. For Appellant : Mr.M.Swaminathan 2 Standing Counsel for Income Tax For Respondents : Mr.R.Sivaraman COMMON JUDGMENT (Judgment of Court was delivered by R.SUDHAKAR,J.) above Tax Case (Appeals) are filed by Revenue as against order of Income Tax Appellate Tribunal deleting penalty levied by Assessing Authority in respect of assessment years 1985-86 to 1990-91. 2. It is submitted by learned counsel appearing for assessee that as against order passed by Tribunal in favour of assessee in respect of merits of case, namely, quantum appeal, Revenue has not filed any appeal and hence, order of Tribunal had become final. Consequently, penalty, which is consequence of quantum addition, does not survive as stand alone. 3. Heard learned Standing Counsel appearing for Revenue on above submission. 4. It is seen from order of Tribunal that Revenue 3 has filed appeals before Tribunal challenging deletion of penalty alone in respect of property at Anna Nagar. Tribunal came to conclusion that in quantum appeal, Tribunal deleted addition made in respect of property at Anna Nagar on ground that same cannot be included in net wealth of assessee. For better clarity, findings of Tribunal read as follows: "3. In present appeals, Revenue has only challenged deletion of penalty in respect of property at Anna Nagar. This Tribunal, by order dated 21.11.1996 in quantum appeal, has deleted addition made in respect of property at Annanagar on ground that same cannot be included in net wealth of assessee. This factual aspect was not disputed by learned D.R. when property at Annanagar could not be included in net wealth of assessee, in our view there cannot be any concealment so as to levy penalty under sec.18(1)(c) of Act in respect of very same property. Therefore, in our considered view, CIT(Appeals) has rightly deleted penalty. We do not find any reason to interfere with order of CIT(Appeals) on this issue. Accordingly, same is confirmed. In result, appeals filed by Revenue are dismissed. 4 5. In light of above, when additions have been deleted by Tribunal and same has not been challenged by Revenue, there is no basis to sustain levy of penalty levied under Section 18(1)(c) of Wealth Tax Act. 6. In result, above Tax Case (Appeals) are dismissed. No costs. Index: Yes / No (R.S.,J.) (R.K.,J.) Internet: Yes / No 24.02.2015 sl To Income Tax Appellate Tribunal, Madras 'D' Bench. R.SUDHAKAR,J. 5 AND R.KARUPPIAH,J. sl Tax Case (Appeal) Nos.376 to 381 of 2005 24.02.2015 Commissioner of Income-tax, Tamil Nadu-VI, Madras v. A.Y. Prabhakar
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