TMI Blog2013 (10) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that he has failed to prove such explanation as bonafide, no penalty can be imposed - As long as there is no finding by the appellate authority that the explanation offered is not a bonafide one, the imposition of penalty is illegal - Imposition of penalty is not automatic. It is only when there is an attempt to evade tax by offering explanation which is found to be false or not bonafide the penalty can be imposed – Decided against the Revenue. - ITA No.932/2006 - - - Dated:- 31-7-2013 - N Kumar And H S Kempanna, JJ. For the Appellant : Sri Y V Raviraj, Adv. For the Respondents : Sri S Parthasarathi, P Dinesh K Mallanarao, Advs. JUDGEMENT:- This appeal is by the Revenue challenging the order passed by the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Aggrieved by both the orders the assessee preferred an appeal before the Tribunal. The Tribunal upheld the disallowance but it interfered with the order imposing the penalty. The Tribunal held it is not a case of furnishing inaccurate particulars of income as observed by the appellate authority in the penalty order, so far as the contribution to pension scheme is concerned, the assessee claimed deduction following the decision of the jurisdictional High Court. On the facts of the case, they have held that the decision is no longer applicable in the present years. Therefore, the claim of the assessee was based on a decision and hence it cannot be said that there was any malafide or that inaccurate particulars were furnished by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to offer an explanation or the explanation offered is found to be false. The present case do not fall under that provision. There is no finding recorded by the Assessing Authority or the lower appellate authority that the explanation offered by the assessee is false, their case of furnishing of inaccurate particulars. Therefore, it is explanation 1B which is attracted. The said provision makes it clear if the assessee offers an explanation and he is not able to substantiate the said explanation and if the said Act is bonafide and all the facts relating to the same material to the computation of total income have been disclosed by him. Then no penalty could be imposed. 10. Though in the instant case a wrong claim is made for deduction and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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