2016 (12) TMI 359

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.... (b) Whether the Appellate Tribunal was right in law in holding that the CIT(A) was competent to initiate penalty proceedings u/s. 271(1)(c) when they were not initiated by the Assessing Officer and there were no fresh facts found by the CIT(A)?". 2 This Reference relates to Assessment Year 1989-90. 3 At the very outset, Mr. Naniwadekar, learned Counsel appearing for the Applicant-Assessee states that Question (b) is not being pressed. In that view, no occasion arises for us to answer the same. Thus, question is (b) returned unanswered. 4 Re Question (a): (a) Applicant-Assessee for the subject Assessment Year 1989-90, had in its Return of Income declared income at 'Nil'. During the course of the assessment proceedings, the A....

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....e imposition of penalty under Section 271 (1) (c) of the Act. The Tribunal by its order dated 4th July, 1997 held that the Applicant-Assessee was guilty of filing incorrect particulars of income. This, particularly so, in view of the fact that the claim made in the earlier Assessment Year on the issue of deferred revenue expenditure had been disallowed by the Assessing Officer. The claim in the subject Assessment Year was not bona fide was further supported by the fact that the same was accepted by the Applicant-Assessee for the subject Assessment Year. In the above view, Tribunal upheld the imposition of the penalty imposed by the CIT(A). (d) We find that the claim for expenditure of deferred revenue expenditure was subject matter of cons....