Commissioner of Income-tax, Del v. Stallion Shox Ltd - 2015-LL-1116-14

Citation	2015-LL-1116-14
Appellant Name	Commissioner of Income-tax, Del
Respondent Name	Stallion Shox Ltd.
Court	HIGH COURT OF DELHI AT NEW DELHI
Relevant Act	Income-tax
Date of Order	16/11/2015
Assessment Year	1989-90
Judgment	View Judgment
Keyword Tags	imposition of penalty • nil income
Bot Summary:	This is an appeal by the Revenue against the order dated 24th March 2003 passed by the Income Tax Appellate Tribunal In ITA No. 3190/Del/1999 for the Assessment Year 1989-90. On 17th November 2003, the following question of law was framed: Whether the Tribunal was correct in law in deleting the penalty levied on the assessee under Section 271(1) of the Income Tax Act, 1961on the ground that the total income of the assessee being minus figure, penalty under the said provision could not be levied 3. The legal position has now been settled by the Supreme Court in Joint Commissioner of Income Tax v. Saheli Leasing and Industries Ltd. 324 ITR 170 that the penalty could be levied even where the total income of the Assessee is a nil or a minus figure. The question is accordingly answered in the negative i.e. in favour of the Revenue and against the Assessee. Since the issue of levy of penalty has not been examined on merits, the matter concerning the penalty leviable under Section 271 is remanded to the ITAT for a fresh decision.

$ * IN HIGH COURT OF DELHI AT NEW DELHI R.155. + ITA 347/2003 COMMISSIONER OF INCOME TAX DEL ..... Petitioner Through: Mr Kamal Sawhney, Senior Standing counsel, Mr. Raghvendra Singh, Junior Standing counsel with Mr. Shikhar Garg, Advocate. versus STALLION SHOX LTD. ..... Respondent Through: None CORAM: JUSTICE S. MURALIDHAR JUSTICE VIBHU BAKHRU ORDER % 16.11.2015 1. This is appeal by Revenue against order dated 24th March 2003 passed by Income Tax Appellate Tribunal ( ITAT ) In ITA No. 3190/Del/1999 for Assessment Year ( AY ) 1989-90. 2. On 17th November 2003, following question of law was framed: Whether Tribunal was correct in law in deleting penalty levied on assessee under Section 271(1) (c) of Income Tax Act, 1961on ground that total income of assessee being minus figure, penalty under said provision could not be levied? 3. legal position has now been settled by Supreme Court in Joint Commissioner of Income Tax v. Saheli Leasing and Industries Ltd. (2010) 324 ITR 170 that penalty could be levied even where total income of Assessee is nil or minus figure. 4. question is accordingly answered in negative i.e. in favour of Revenue and against Assessee. However, since issue of levy of penalty has not been examined on merits, matter concerning penalty leviable under Section 271 (1) (c) is remanded to ITAT for fresh decision. 5. appeal is disposed of in above terms. S.MURALIDHAR, J VIBHU BAKHRU, J NOVEMBER 16, 2015 mg Commissioner of Income-tax, Del v. Stallion Shox Ltd

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