1999 (9) TMI 30

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....on to the Income-tax Appellate Tribunal to refer the following question, in respect of the assessment year 1987-88, for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in confirming the order of the Commissioner of Income-tax (Appeals)-VII, New Delhi, cancelling the penalty under section 271(1)(c) of the Income-tax Act lev....

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....sessee before the High Court in the suit filed by the said bank for recovery of the loan amount. From the documents so filed, the Assessing Officer noted that the assessee had denied its liability towards the bank and had also taken up the plea that the suit was barred by time. He, therefore, concluded that the assessee, having denied its liability for payment of interest to the bank, by claiming ....

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....eeded to levy penalty mainly in view of the fact that the assessee denied his liability for payment of the principal amount by taking a technical plea that its recovery was time barred. This plea taken by the assessee before the High Court cannot be made the basis for coming to a conclusion that he had made a wrong claim about its liability to pay the interest and that it had furnished incorrect p....

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....t making a claim in respect of the interest payable to the bank tantamounts to furnishing of inaccurate particulars in respect of the said claim. It is obvious even from the format of the question that apart from the said stand of the assessee in the suit, no other material or circumstance has been brought on record by the Assessing Officer which may lead to the conclusion that the assessee had co....