TaxTMI 
TaxTMI 
2022 (10) TMI 1052
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....nch (For short "the Tribunal") in ITA No. 1778/Ahd/2017 for the assessment year 2007-2008 whereby the Tribunal allowed the appeal filed by the respondent assessee deleting the penalty under section 271(1)(c) of the Act amounting to Rs.1,46,48,271/- levied by the Assessing Officer and confirmed by the CIT(Appeals). 2. Following substantial questions of law are proposed: "(a) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is justified in deleting the penalty levied u/s 271(1) (c) of the Income Tax Act against the assessee for furnishing inaccurate particulars of income in respect of the addition made on account of disallowance of interest expenses by observing that the assessee has corrected the ....
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....n the circumstances of the case and in law, the Hon'ble ITAT is justified in deleting the penalty levied u/s 271(1) (c) of the Income Tax Act, without appreciating the fact that the assessee had made claim of interest expenses twice in the Profit & Loss Account for the year under consideration but the assessee had neither initiated any remedial action to rectify this error nor submitted any satisfactory explanation for making such wrong claim of interest leading to conclusion that the assessee had made malafide intentions for making wrong claim of interest expenses in the Profit & Loss Account and thus this case is covered by Explanation 1 to Section 271(1) of the Income Tax Act, 1961?" 3. Brief facts of the case are that the assesse....
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....ee therefore, preferred appeal before the Tribunal with regard to the order sustaining penalty by CIT(Appeals) for interest expenses of Rs. 11.90 crores which was accounted twice. 8. The Tribunal however, considering the fact that the assessee was a public sector undertaking and bona fide mistake of twice accounting the provision for interest expenses was rectified by showing the said interest expenses as prior period income in the subsequent year 2008-2009, allowed the appeal deleting the penalty under section 271(1)(c) of the Act. 9. The Tribunal has arrived at finding of fact that the assessee under bona fide mistake, made provision for interest expenses of Rs. 11.90 crores twice which was rectified in the subsequent years by showing t....