2013 (10) TMI 74

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....s completed on 19.09.1997 showing loss of Rs.25,15,67,622/-. The said loss was reduced on account of certain disallowances including contribution to pension scheme in a sum of Rs.19,21,640/- and interest on penal charges levied for alleged excess consumption of electricity in a sum of Rs.30,74,627/-, in all a sum of Rs.49,96,267/-. 3. The Assessing Authority disallowed the said disallowances and brought the said amounts to tax. Aggrieved by the said order the assessee preferred an appeal to the Commissioner of Income Tax Appeals, who has affirmed the said order. But he observed that, on due application of mind he finds that in respect of grounds of appeal dealt with in para no.2 and 4 above, the appellant has furnished inaccurate particu....

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....observations of the appellate authority that the assessee had furnished inaccurate particulars of income. At best, it may be a case of wrong claim made by the assessee which was rejected by the authorities below. Further it held, it is settled law that levy of penalty u/S 271(1)(c) is not automatic and therefore in the absence of any malafides being established against the assessee, imposition of penalty was bad in law and therefore it set aside the order imposing the penalty. Aggrieved by the said order, the Revenue has preferred this appeal. 7. Learned counsel appearing for the Revenue assailing the impugned order contended, the assessee admittedly claimed deduction by showing these provisions. Now three Courts have concurrently held, ....