Classic Papers Conveters P.Ltd. vs Commissioner Of Income Tax I Delhi
2011 Latest Caselaw 4300 Del

*        IN THE HIGH COURT OF DELHI AT NEW DELHI

+                  Writ Petition (Civil) No.14320/2006

%                               Date of Decision: September 02, 2011

CLASSIC PAPERS CONVETERS P.LTD.              ..... Petitioner
                  Through  Mr. R.N. Mehta and Mr. Sunil
                           Goyal, Advocates.

                    versus

COMMISSIONER OF INCOME TAX I DELHI          ..... Respondent
                  Through Mr. Sanjeev Sabharwal, Advocate.

CORAM:
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE SANJIV KHANNA

                                ORDER

Heard Mr. R.N. Mehta, learned counsel for the assessee-petitioner

and Mr. Sanjeev Sabharwal, learned counsel for the Revenue.

The singular issue that arises for consideration in this writ petition

is whether the application of the petitioner preferred under Section 273A

of the Income Tax Act, 1961 (Act, for short) for waiver of penalty has

been correctly rejected or not. On a perusal of the material brought on

record and the order passed by the Commissioner of Income Tax, it is

perceptible that the petitioner, a private limited company, whose only

income is from sub-letting of premises, faced with penalty proceedings

under Section 271 (1) (c) of the Act and eventually that attained finality.

The initiation of the penalty proceedings is not the subject matter of

challenge, but the denial of benefit of waiver as engrafted under Section

273A of the Act. On a query being made, we have been apprised at the

Bar that the penalty amount comes to Rs.2,59,240/- in respect of one

year and Rs. 2,96,643/- for the second year. The rental income as

reflectible from the order passed by the Commissioner of Income Tax is

approximately Rs.37,80,000/-. In our considered opinion, the reasons

ascribed by the authorities below are quite cogent and germane and the

same really do not deserve to be interfered with in exercise of power of

judicial review.

In the result, the writ petition, being devoid of merits, stands

dismissed without any order as to costs.

CHIEF JUSTICE

SANJIV KHANNA, J.

September 02, 2011 NA