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TMI Blog2011 (4) TMI 939X X X X Extracts X X X X X X X X Extracts X X X X ..... levied by the Assessing Officer in respect of addition of Rs. 12,27,000 made in the assessment on account of disallowance of the assessee's claim of interest payable. In the accounts, the assessee made a provision for interest payable to the extent of Rs. 12.27 lakhs on an amount of Rs. 170.20 lakhs relating to realisation of levy price of sugar. The addition so made by the Assessing Officer was deleted by the learned Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) has discussed the facts of the case that the assessee had credited an amount of Rs. 673.07 lakhs, which represented the amount realised and interest thereon on account of sugar sold after February 22, 1974. This amount was being shown in the sundry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther appeal, the Tribunal restored the Assessing Officer's order by reversing the Commissioner of Income-tax (Appeals)'s order and, therefore, addition made by the Assessing Officer remained sustained. 3. We have heard both the parties and have carefully gone through the material on record. It is not in dispute that the addition made by the Assessing Officer was deleted by the Commissioner of Income-tax (Appeals), which goes to show that there was divergence of opinion amongst the Departmental authorities themselves in the sense that the Commissioner of Income-tax (Appeals) has accepted the assessee's claim as against the Assessing Officer's action in not accepting the assessee's claim. The additions made by the Assessing Officer have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to levy penalty under section 271(1)(c) of the Act. It is also not a case where the Assessing Officer has, at any stage of the proceedings, stated that the assessee has not furnished necessary details as to the claim made. It is also not a case of the Assessing Officer that the assessee has suppressed material facts relating to the claim made by it. It is merely a case where the assessee's claim has been disallowed without there being any evidence or material on record to show that the assessee had any mala fide intention to evade payment of taxes. It is no doubt true that the Department is not supposed to prove mens rea on the part of the assessee but it is equally true that if the assessee can establish that he made the claim in bona f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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