Case Number: ITA 694/DEL/2019
Appellant: GE Engine Services Malaysia SDN BHD, 6th Floor, Building No. 7A, Standard Chartered Building, DLF Cyber City, Phase-III, Gurugram – 122 002, Haryana, India (PAN: AADCG1773E)
Respondent: Deputy Commissioner of Income Tax (International Taxation), Circle-1(3)(1), New Delhi
Assessment Year: 2002-03
Result: Appeal Allowed
Case Filed On: 2019-01-31
Order Type: Final Tribunal Order
Date of Order: 2019-02-27
Pronounced On: 2019-02-27
GE Engine Services Malaysia SDN BHD (the appellant) filed an appeal against the order dated 22nd November 2018 of the Commissioner of Income Tax (Appeals)-42, New Delhi, relating to the assessment year 2002-03. The case primarily revolved around the levying of penalties under Section 271(1)(c) of the Income Tax Act, 1961.
The appellant contested the assessment order on the following grounds:
The case was heard by the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘C’, with Shri Kuldip Singh, Judicial Member, and Shri Anadee Nath Misshra, Accountant Member, presiding. The appellant was represented by Shri Sachit Jolly and Shri Aarush Bhatia, Advocates, while the revenue was represented by Shri J.K. Mishra, CIT DR.
The ITAT reviewed the facts of the case, including the grounds of appeal and the submissions made by both parties. The tribunal noted that the penalties levied under Section 271(1)(c) of the Income Tax Act were related to additions in the assessment order that had been confirmed by the ITAT. However, these additions were disputed by the appellant in appeals filed under Section 260A of the Income Tax Act before the High Court.
The tribunal also considered that the High Court had framed substantial questions of law regarding the quantum additions, indicating that the issues were debatable and disputable. This suggested that the penalty might not be justified as the additions were not conclusively settled.
In conclusion, the ITAT allowed the appeal and canceled the penalties levied under Section 271(1)(c) of the Income Tax Act. The tribunal emphasized that penalties on debatable issues, where substantial questions of law are framed by the High Court, may not be warranted. The case highlights the importance of ensuring that penalties are levied only on clear and undisputable grounds.
Source: Income Tax Appellate Tribunal, Delhi Benches ‘C’, New Delhi
Disclaimer: This article provides an overview of the case and is not a substitute for professional legal advice. For detailed information, readers are encouraged to refer to the official case documents and consult with a qualified legal professional.
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