2023 (11) TMI 742

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....) of the Income Tax Act, 1961 (the "Act") for furnishing inaccurate particulars of income for the Assessment year ("AY") 2005-06 and all its grounds relate thereto. 2. Briefly stated, the assessee company is an enterprise of Govt. of NCT of Delhi. It is engaged in the business of generation of power. For AY 2005- 06, it filed its return on 31.10.2005 declaring income of Rs. 13,70,69,307/- which was subsequently revised to Rs. 16,43,97,948/- by filing revised return which was processed under section 143(1) of the Act on 23.05.2006. Its case was selected for scrutiny under CASS. Statutory notices under section 142(1) and 143(2) were issued/served and complied with. Assessment was completed on total income of Rs. 16,43,97,948/- as per the n....

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....book profits which were made by the assessee suo-moto in the revised return accepted by the Ld. AO including the adjustment of Rs. 5,59,339/- being provision for ex-gratia leave salary gratuity deleted by the ITAT. He further submitted that there has been retrospective amendment in law brought by the Finance (No.2) Act, 2009 providing for add back of any provision for diminution in the value of any asset for the purpose of computation of book profit but this amended law did not exist when the assessee filed the return on 23.05.2006. Therefore, penalty is not leviable as held in the decisions rendered in many cases by the ITAT, Delhi. The Ld. AR also contended that the assessee is a Public Sector Undertaking and there cannot be any malafide ....

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.... in support thereof. There is no such evidence forthcoming from the records except the bald statement of the Ld. AO which is bereft of any material on facts or in law establishing malafide intention on the part of the assessee. Element of conscious furnishing of inaccurate particulars of income by the assessee is absolutely lacking. Reliance on various decisions by the Ld. CIT(A) is off the mark. 8. It is also evident that the income of Rs. 16,43,97,948/- declared by the assessee in the revised return under the normal provisions of the Act is the same as assessed by the Ld. AO. It is testimony of the bonafide intention of the assessee to file return reflecting the true state of affairs of the company. 9. The difference of Rs. 3,34,59,....