2006 (7) TMI 184

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....enior counsel Sri. P.K. Ravindranatha Menon, appearing for the appellant and Sri. P. Balakrishnan, counsel appearing for the respondent-assessee. Appeal arises from annexure E order of the Tribunal sustaining cancellation of penalty levied under section 271(1)(c) of the Income-tax Act, 1961, by the Commissioner of Income-tax (Appeals). During the assessment year 1982-83, the assessee, which was ca....

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....the assessee deliberately evaded payment of tax by taking over the business in film, which according to him, is only a make believe and in the absence of a proper explanation penalty was levied. However, the Commissioner of Income-tax (Appeals) by a detailed order held that there is no concealment of income inasmuch as the assessee had furnished full particulars of income and nothing was concealed....

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....ty by passing the required resolution and the loss is seen debited in the profit and loss account and, therefore, there is no concealment of income or furnishing of inadequate particulars. At the maximum, it is only a failed tax planning. The assessment is sustained in appeal and tax is also stated to be remitted. Penalty pertains to the year 1982-83 and the partner, whose business is taken over d....