9911796707
TMI Blog2015 (10) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the Revenue against two separate orders of the Commissioner of Income Tax (Appeals)-VIII, Ahmedabad, both dated 04.04.2011 for Assessment Years 1985-86 and 1986-87. 2. The only ground raised in these appeals by the Revenue is against the cancellation of penalty of Rs. 3,81,513/- and Rs. 4,23,806/- for Assessment Years 1985-86 and 1986-87 respectively, levied by the Assessing Officer u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties and perused the material placed before us. After considering the facts of the case and the arguments of both the sides, we do not find any justification to take a view different than the view taken by the CIT(A). The assessee is paying commission to M/s. Somnath Chemicals since the preceding many years. In the earlier years, the commission paid to him was allowed in the order passed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion the assessee has not been able to prove the services rendered by M/s. Somnath Chemicals and therefore, the commission paid to it was disallowed. The disallowance was sustained by the CIT(A) as well as ITAT. However, the penalty levied u/s 271(1)(c) in respect of such payment of commission has been cancelled by the CIT(A), following the decision of Hon'ble Apex Court in the case of CIT Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or false. That merely because the claim of commission is disallowed by the Assessing Officer and upheld by the appellate authorities will not amount to concealment of income or furnishing of inaccurate particulars of income of the assessee. In view of the above, in our opinion, the CIT(A) rightly cancelled the penalty relying upon the decision of Hon'ble Apex Court. We, therefore, uphold his o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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