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Commissioner Of Income Tax - Ii vs Dharamshi B Shah on 9 June, 2014

13. We have considered the rival submissions as also decisions cited by the ld. counsel for the assessee and the learned DR. We are of the view that the decision of the Hon'ble High Court of Karnataka is binding on this Tribunal as the said High Court is the jurisdictional High Court. Therefore, following the ratio laid down by the Hon'ble High Court of Karnataka, we hold that penalty cannot be imposed on the assessee in the given facts and circumstances of the case as the additions made in the quantum proceedings based on which the penalty was imposed, is subject matter of challenge before the Hon'ble High Court and the Hon'ble High Court has admitted substantial question of law on the additions which are subject- matter of imposition of penalty. We therefore direct that the penalty imposed in both the assessment years be cancelled and both the appeals of the assessee are allowed.
Gujarat High Court Cites 4 - Cited by 10 - M R Shah - Full Document

Pr. Commissioner Of Income Tax-22, ... vs Rasiklal M. Parikh on 19 March, 2019

12. The ld. DR, on the other hand, relied on the decision of the Hon'ble Bombay High Court in the case of Pr. CIT v. Rasiklal M. Parikh, ITA No.169/2017, judgment dated 19.03.2019, where a contrary view on the same issue has been taken by the Hon'ble Bombay High Court, following the decision of the Hon'ble Gujarat High Court in the case of CIT v. Dharamshi B. Shah, 366 ITR 140 (Guj). The view taken in the aforesaid decisions was that penalty cannot be deleted on the sole ground that the additions in respect of which penalty was imposed gave rise to substantial question of law and admitted for consideration by the High Court.
Bombay High Court Cites 5 - Cited by 1 - Full Document
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