2008 (4) TMI 27

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.... present Appeal under Section 260A of the Income Tax Act, 1961(for short 'the Act') against the order of the Income Tax Appellate Tribunal, Chandigarh , Bench 'B' Chandigarh (for short 'the Tribunal'), dated 30.7.2007 passed in ITA No.245/CHANDI/2007 for the Assessment Year 2003-04 raising the following substantial question of law: - "Whether on the facts and in the circumstances of the case, the ....

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....ssessee that the deduction under Section 80 IB of the Act was being claimed wrongly by mistake. Thereafter, the assessee revised the return on 24.3.2005 declaring income of Rs.10,04,200/- and claimed Rs.4,30,371/- as deduction under Section 80 IB and thereafter the assessment was completed. The Assessing Officer also initiated penalty proceedings under Section 274 read with Section 271(1)(c) again....

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....assessee had claimed wrong deduction and therefore, the penalty proceedings were rightly initiated against the assessee. However, the appeal of the Revenue was dismissed by the Tribunal holding that no definite finding has been recorded by the Assessing Officer that there is a concealment of income by the assessee and it was merely a case of a wrong claim under mistaken belief as to which five yea....

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....he first assessment year of exemption starting from 1999-2000 and the said mistake was a bonafide mistake committed by the Chartered Accountant of the assessee who has duly audited the return. The scope of reasonable cause/bonafide mistake has been debated upon in a catena of judgments. The Hon'ble Apex Court in the case of M/s Hindustan Steel Ltd. Vs. State of Orissa (1972) 83 ITR 26 (SC) has cat....