DCIT v. Camellia Tea Group (P) Ltd.

INCOME TAX ACT, 1961

--Appeal (Tribunal)--Condonation of delay Reasonable cause --Held: The appeal of the revenue was time barred by 78 days. The reasonable cause for delay was attributed to long pendency of work. Therefore, delay in filing of appeal was condoned.

Income Tax Act, 1961, Section 253(5)

REFERRED :

FAVOUR : Against the assessee

A.Y. : 2004-05

INCOME TAX ACT, 1961

--Penalty under section 271(1)(c)--Concealment or furnishing of inaccurate particulars of income Disallowance of loss on fire --In instant case, the assessee had suffered loss on fire which was duly disclosed in the Profit and loss account and in the audit report. The AO did not allow loss as business loss by referring to provision of section 45(1A). On appeal, the CIT(A) allowed the loss as business loss. In further appeal ITAT held that the same was not allowable as business loss. From the above, it was clear that the issue was debatable and it could not be said that the assessee had any malafide intention. The assessee was under bona fide belief that the loss on fire will be allowed as business loss. Mere disallowance of loss on fire treated as business loss by assessee would not lead to a conclusion that the assessee had furnished inaccurate particulars of income or had concealed any income. Therefore, the CIT(A) was justified in deleting penalty under section 271(1)(c).

Income Tax Act, 1961, Section 271(1)(c)

Relied:CIT v. Reliance Petro Products (P) Ltd 322 ITR 158 (SC), Hindustan Steel Ltd. v. State of Orissa 83 ITR 26 (SC)

REFERRED : Vania Silk Mills (P) Ltd. v. CIT 191 ITR 647 (SC), Rajasthan Spinning and Weaving Mills 224 CTR 1 and Kanbay Software India (P) Ltd. 122 TTJ 721

FAVOUR : In assessee's favour

A.Y. : 2004-05

IN THE ITAT, KOLKATA B BENCH

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