2005 (5) TMI 51

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.... This is an appeal filed by the Commissioner of Income-tax under section 260A of the Income-tax Act, 1961, against an order dated February 26, 1999, passed by the Income-tax Appellate Tribunal in I.T.A. No. 467/Ind/1995. This appeal was admitted for final hearing on the following substantial question of law: "Whether, on the facts and in the circumstances of the case and in law, the Tribunal wa....

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....ory support" earned on account of some export transactions and hence it amounted to furnishing of inaccurate particulars within the meaning of section 271(1)(c) of the Act rendering the assessee to pay penalty. Accordingly, the Assessing Officer imposed the penalty by not accepting the explanation offered by the assessee. In an appeal filed by the assessee, the Commissioner of Income-tax (Appeals)....

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.... case of furnishing any inaccurate or false particulars in the return so as to empower the Assessing Officer to initiate penalty proceedings under section 271(1)(c) ibid. Firstly, there was justification on the part of the assessee in not including the disputed item, i.e., cash credit support, because at the relevant time there was a decision of the Tribunal in favour of the assessee holding that ....

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.... explanation offered by them deserves to be accepted. We concur with the view so taken by the two appellate authorities as it does not call for any interference in our appellate jurisdiction. In order to impose any penalty under section 271(1)(c) of the Act, it is necessary for the Assessing Officer to show that the assessee has deliberately and with an oblique motive suppressed material claim ....