2005 (1) TMI 85

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....ed by A.M. Sapre J.- This is an appeal filed by the Revenue (Commissioner of Income-tax) under section 260A of the Income-tax Act, 1961, against an order dated October 15, 1998, passed by the Income-tax Appellate Tribunal (for brevity hereinafter referred to as the Tribunal) in I.T.A. No. 271/Ind/94. This appeal was admitted for final hearing on the following substantial questions of law: "1....

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.... Commissioner of Income-tax (Appeals) and the order of the Commissioner of Income-tax (Appeals) was maintained by the Tribunal holding, inter alia, that no case for imposing penalty under section 271(1)(c) ibid is made out. The assessee is a Government of India undertaking formed under the provisions of the M.P. Co-operative Societies Act. In the assessment year in question, due to non-disclosu....

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.... to be set aside by both the Commissioner of Income-tax (Appeals) and the Tribunal, giving rise to the filing of this appeal by the Revenue. Having heard the submissions of learned counsel for the appellant (Revenue) and having perused the record of the case, we are of the opinion that no interference is called for in the impugned order as passed by the Tribunal. In our opinion, once the fac....

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....nal being in the knowledge of the assessee so as to evade payment of income-tax. The assessee being a non-profit organisation managed and controlled by the Government of India for supply/distribution of electricity in the State, it cannot be held that they had any deliberate intention to evade payment of tax. If due to some accountancy system maintained, one entry could not be subjected to tax, th....