2000 (3) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... ordering deletion of the penalty under section 271(1)(c) of the Income tax Act, 1961. The facts of the case are as follows: The assessee was a partner in the firm, VIP Enterprises. He retired from the firm as it was incurring heavy losses. The firm was carrying on business of distributing films. On his retirement, all the assets were valued including unexpired rights of distribution of film....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....from the order passed by the Assessing Officer as to whether the amount received by the assessee in lieu of his rights for surrendering the films for distribution in the firm has to be taxed as business profits or under the head "Capital gains". Secondly, the Tribunal found that the assessee, under the above circumstances, was under a bona fide belief that the amount was not taxable when he filed ....