TMI Blog2002 (11) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, giving rise to this appeal, are that assessee, a private limited company, earning income by way of interest on loans and advances filed return for asst. yr. 1990-91 at an income of Rs. 71,530. During assessment proceedings the AO noted that assessee had shown the income from interest on receipt basis while assessee being company was supposed to follow mercantile system of accounting and interest income was to be calculated on accrual basis. Accordingly, the AO assessed the income at Rs. 2,38,442 on accrual basis. The AO initiated fixated penalty proceedings under s. 271(1)(c) of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), and served a notice which remained uncomplied with and AO levied a penalty of Rs. 90,132 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in spite of that he had shown the income for asst. yr. 1990-91 as per cash system of accounting which was not justifiable and thus he was rightly held liable for furnishing of inaccurate particulars and penalty was rightly levied. 4. As against it, the learned counsel for the assessee placing reliance on the decision of Hon'ble Delhi High Court in the case of CIT vs. Ram Commercial Enterprises Ltd. (2001) 167 CTR (Del) 321 : (2000) 246 ITR 568 (Del) submitted that there was no satisfaction recorded by the AO in the assessment order and as per ratio of decision in the aforesaid case, the penalty was liable to be deleted. This ratio was applied by the Tribunal, Delhi Bench "F" in the case, of Dy. CIT vs. R.J. Wood Co. (P) Ltd. in WTA No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the paper book. It was submitted that no penalty was leviable if there was difference of opinion. Lastly, it was submitted that AO had computed the income on the basis of information voluntarily provided by the assessee along with return of income which was in the form of audited P L a/c and balance sheet, etc. and as such the question of concealment or furnishing of inaccurate particulars does not arise, as assessee had disclosed all the particulars of its income. 7. I have heard the rival submissions and have gone through the entire material available on record. The conclusion is that penalty had rightly been deleted by the CIT(A). It is to go firstly on the ground of non-recording of satisfaction as required by Their Lordships in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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