2011 (4) TMI 939

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....e penalty under section 271(1)(c) has been levied by the Assessing Officer in respect of addition of Rs. 12,27,000 made in the assessment on account of disallowance of the assessee's claim of interest payable. In the accounts, the assessee made a provision for interest payable to the extent of Rs. 12.27 lakhs on an amount of Rs. 170.20 lakhs relating to realisation of levy price of sugar. The addition so made by the Assessing Officer was deleted by the learned Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) has discussed the facts of the case that the assessee had credited an amount of Rs. 673.07 lakhs, which represented the amount realised and interest thereon on account of sugar sold after February 22, 1974.....

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....fore, deleted the addition. However, on further appeal, the Tribunal restored the Assessing Officer's order by reversing the Commissioner of Income-tax (Appeals)'s order and, therefore, addition made by the Assessing Officer remained sustained. 3. We have heard both the parties and have carefully gone through the material on record. It is not in dispute that the addition made by the Assessing Officer was deleted by the Commissioner of Income-tax (Appeals), which goes to show that there was divergence of opinion amongst the Departmental authorities themselves in the sense that the Commissioner of Income-tax (Appeals) has accepted the assessee's claim as against the Assessing Officer's action in not accepting the assessee's claim. The addi....