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2010 (3) TMI 774 - ITAT, CHENNAIPenalty - The explanation offered regarding total electricity expenses of Rs. 19.86 lakhs was accepted except that of Rs. 4 89 lakhs because in whose name this amount was explained i.e., Shri P.S. Mani had denied having paid this amount but had accepted that someone in the office of M/s. Shivaji Films had got his signatures. The assessee was actually never confronted with that statement in quantum proceedings but was told about only during penalty proceedings. The totality of the facts and the circumstances of this case speaks volumes in favour of the assessee. The assessee is not the father of the bride. The Assessing Officer has simply assumed and presumed facts. The assessee had offered explanation but to avoid harassment and embarrassment and further litigation did not contest the quantum addition. In our opinion, this is not a fit case for the levy of penalty. Accordingly, we order to delete/cancel the impugned penalty and allow the appeal of the assessee.
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