2013 (10) TMI 74

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....T:- This appeal is by the Revenue challenging the order passed by the Tribunal setting aside the order of the Commissioner for Income Tax Appeals imposing penalty for the first time in the appellate proceedings. 2. The assessee filed returns on 29.11.1996 claiming loss of Rs.26,03,43,978/-. Assessment was completed on 19.09.1997 showing loss of Rs.25,15,67,622/-. The said loss was reduced on acc....

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....(1) read with Section 4A thereto. Hence he directed penalty proceedings u/S 271(1)(c) be initiated. 4. After initiating an independent proceedings for levy of penalty by an order dated 22.12.1999 he imposed a minimum and maximum penalty on the concealed income of Rs.49,96,267/- at Rs.22,98,284/- and Rs.68,94,852/- respectively and a penalty of Rs.22,98,284/- is imposed. 5. Aggrieved by both the ....

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....nder the impression that the Company was maintaining accounts under the mercantile system. Here also they found there was no material to support the 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 tha....

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....aring for the assessee supported the impugned order. 9. While imposing the penalty the Commissioner of Income Tax Appeals has relied on explanation-1 to Section 271(1)(c). Section 1A deals with a case of assessee failing to offer an explanation or the explanation offered is found to be false. The present case do not fall under that provision. There is no finding recorded by the Assessing Authorit....