Commissioner Of Income Tax vs Master India Pvt Ltd
2010 Latest Caselaw 2642 Del

                THE HIGH COURT OF DELHI AT NEW DELHI

%                                     Judgment delivered on : 18.05.2010

+                                     ITA 575/2010

COMMISSIONER OF INCOME TAX                                      ... Appellant

                                      - versus -


MASTER INDIA PVT LTD                                         ... Respondent

Advocates who appeared in this case:

For the Appellant       : Ms Prem Lata Bansal with Ms Anshul Sharma
For the Respondent      : None



CORAM:-
HON'BLE MR JUSTICE BADAR DURREZ AHMED
HON'BLE MR JUSTICE V.K. JAIN

1. Whether Reporters of local papers may be allowed to see the judgment ?

2. To be referred to the Reporter or not ?

3. Whether the judgment should be reported in Digest ?

BADAR DURREZ AHMED, J (ORAL)

1. This appeal is directed against the order dated 03.04.2009 passed

by the Income Tax Appellate Tribunal in Appeal No.611/Del/2008 relating

to the assessment year 2001-2002. The impugned order arose out of the

penalty proceedings under Section 271(1)(c) of the Income Tax Act, 1961

by the Assessing Officer who ultimately imposed penalty of Rs 4,61,913/-

on the assessee for allegedly furnishing inaccurate particulars of income.

2. The assessee had received interest of Rs 18,62,538/- on Fixed

Deposits and had also received certain other receipts totalling

Rs 21,91,820/-. These were included in the business income of the assessee

and were treated by the Assessing Officer as the assessee's income from

other sources. The eligible profits for computation of relief under Section

80HHD of the said Act were thereby reduced. The Assessing Officer

computed the relief under Section 80HHD at Rs 42,90,282/- against the

amount of Rs 53,92,895/- as claimed by the assessee. This resulted in

excess amount of deduction on the part of the assessee under Section

80HHD at Rs 11,02,613/-. It was on the basis of this excess claim that the

penalty of Rs 4,61,913/- was imposed on the assessee.

3. The Commissioner of Income Tax deleted the penalty and the

said deletion was confirmed by Income Tax Appellate Tribunal. The

Tribunal took the view that the assessee did not furnish any inaccurate

particulars of income nor did the assessee conceal any part of its income.

The question with regard to the claim of deduction under Section 80HHD

was, at that point of time, debatable. Consequently, the Tribunal held that

this was not a case where imposition of penalty under Section 271(1)(c) of

the said Act could be justified.

4. We find no infirmity in the reasoning adopted by the Tribunal nor

has any perversity been pointed out in the findings of fact.

The appeal is dismissed.

BADAR DURREZ AHMED, J

V.K. JAIN, J MAY 18, 2010 'sn'