TMI Blog2008 (2) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. JUDGMENT The judgment of the court was delivered by SATISH KUMAR MITTAL, J.- 1. This order shall dispose of ITA Nos.600 and 599 of 2007 which have been filed by the revenue against the order dated 18.05.2007 passed by the Income Tax Appellate Tribunal (hereinafter referred to as 'the ITAT') in ITA Nos.739/Chandi/2004 and 213/Chandi/2006 in case of the respondent-assessee for the Assessment Years 1996-97 and 1997-98, respectively. 2. In this case, the assessee filed the return of income for the Assessment Years 1996-97 and 1997-98 in which he had claimed certain amount as business expenditure incurred by it on studies of Shri Varun Mehta son of Director of the company on the ground that under agreement between t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, it is a trite law that the same stand on an altogether different footing than the assessment proceeding. The findings of the Revenue authorities in the assessment proceedings may be relevant but cannot be considered as conclusive for justifying the imposition of penalty u/s 271(1)(c) of the Act. 9. In the instant case there is no allegation by the Assessing Officer that the assessee did not disclose the full particulars of the claim. The deduction claimed by the assessee by way of a debit in the profit loss account cannot be said to be bereft of bona fides. This is for the reason that the assessee incurred expenditure as an obligation under agreement by way of which the beneficiary was to serve with the assessee company for a stipula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advanced by the assessee has been found to be unsatisfactory and thus rejected by the AO. However, the explanations furnished by the assessee were neither found to be false and nor is there any finding by the A.O. either in the order of assessment or even during the penalty proceedings that the assessee did not offer complete particulars or details of the expenditure whenever considered necessary by the Assessing Officer. Therefore, considering the totality of the circumstances and the fact position in the instant case, we do not find it a fit case for imposition of penalty u/s 271(1)(c) of the Act. Hence, we hereby affirm the decision of the CIT (Appeals) on this aspect." 5. We have heard the counsel for the appellant and perused the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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