TMI Blog2013 (10) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... und to be bona fide, Explanation 1 to section 271(1)(c) would not stand attracted. However, when the assessee does not substantiate the explanation or the same is found to be lacking in bona fide, Explanation 1 to section 271(1)(c) would stand attracted – In the present case, there was no lacking in bona fides in the claim of the assessee originally made – Decided against the Revenue. - - - - - Dated:- 12-9-2012 - CHITRA VENKATARAMAN MRS. AND RAVICHANDRABAABU K., JJ JUDGEMENT Mrs. Chitra Venkataraman J.- The Revenue seeks admission of the tax case (Appeal) for the assessment year 2007-08 on the following substantial question of law : "Whether, on the facts and in the circumstances of the case, the Tribunal has right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted in the letter dated December 11, 2009, revealed the doubt persisting in the mind of the officer as to whether the expenditure was an allowable one or not. However, the assessee filed a letter offering the said expenditure to be treated as an income, which, by itself, would not make this to be called as concealment. The declaration of the enhanced income thus belies the claim of the officer that there was concealment. Thus, the first appellate authority deleted the penalty. Aggrieved by this, the Revenue went on appeal before the Income-tax Appellate Tribunal. In paragraph 10 of the order, the Tribunal pointed out that of the three issues, the question of addition made in respect of written off of sundry balance was considered in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision reported in CITv. Reliance Petro Products P. Ltd. [2010] 322 ITR 158 (SC) and held that so long as the assessee had not concealed any material or the factual information given by him has not been found to be incorrect, there would be no imposition of penalty under section 271(1)(c) of the Income-tax Act. Even if the claim made by the assessee is unsustainable in law, so long as the assessee substantiated the explanation offered by him or the same is found to be bona fide, Explanation 1 to section 271(1)(c) would not stand attracted. However, when the assessee does not substantiate the explanation or the same is found to be lacking in bona fide, Explanation 1 to section 271(1)(c) would stand attracted. As already seen, when the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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