TMI Blog2000 (12) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ismissed by the Tribunal. Dispute relates to asst. yr. 1987-88. 2. Brief reference to the factual aspects would suffice. Assessee obtained order for supply of imported video cassettes to Czechoslovakia. It obtained import licence to import video cassettes from a Korean company in semi-knocked down (SKD in short) condition. It was to be assembled in India by the assessee and then to the re-exported to Czechoslovakia. Goods were despatched by the Korean company to the assessee along with the bill of entry which indicated the words "video blank cassettes tape in SKD'. When the goods reached India, Customs authorities raised some doubts and accordingly they opened one of the packets. On opening it was noticed by the authorities that though th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission of inaccurate particulars of income. All the relevant factual aspects were before the authority. There was neither concealment nor furnishing of inaccurate particulars. AO did not accept the plea and levied penalty of Rs. 2,20,500 after obtaining prior approval of the concerned Deputy Commissioner of Income-tax (in short Dy. CIT). Assessee preferred appeal before the CIT(A) against the imposition of penalty. Said authority observed that in view of Explanation-I to s. 271(1)(c) penalty was not leviable. Matter was carried in appeal before the Tribunal by Revenue Tribunal upheld the deletion of penalty and observed as follows: "Thus, the only question for our consideration is whether the explanation furnished by the assessee was bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Bombay High Court in CIT vs. Pannalal Narottamdas Co. (1968) 67 ITR 667 (Bom). TC 14R.77B. It is also to be noted that in quantum appeal Tribunal had referred the following questions for opinion of this Court under s. 256(1) of the Act: "(i) Whether, on the facts and circumstances of the case, the assessee is entitled to deduction of the payment of Rs. 3 lakhs made under s. 125 of the Customs Act, 1961? (ii) Whether, on the facts and circumstances of the case, the assessee is entitled to deduction of the payment of Rs. 50,000 made under s. 11 of the Customs Act, 1962?" 5. Tribunal recorded a finding of fact that though assessee had failed to substantiate its explanation but, certainly, its explanation was bona fide. Reference was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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