The Appellate Tribunal considered a case involving the...

The Appellate Tribunal considered a case involving the disallowance of electricity expenses leading to a penalty u/s 271(1)(c). The Tribunal noted the essential role of a sorting machine, powered by electricity, in the business activity. The machine was part of the Plant & Machinery and depreciation had been allowed by the Assessing Officer. While the electricity bill was in the husband's name due to the machine being used in his godown, the lack of direct evidence led to disallowance. The Tribunal found the assessee's explanation to be bona fide, not mala fide, as the claim was not entirely baseless. Citing a relevant case, the Tribunal concluded that the penalty was unwarranted, as the assessee had not concealed income intentionally. Consequently, the penalty u/s 271(1)(c) was deleted, and the assessee's appeal was allowed.