COMMISSIONER OF INCOME TAX Vs. GRAPHIC (INDIA)

JUDGEMENT

(1.) PRESENT appeal has been filed by the Revenue under Section 260A of the IT Act, 1961 (for short as 'Act') against the order dt. 2nd Sept., 2005 passed by the Income -tax Appellate Tribunal (for short as 'Tribunal') Delhi 'E' Bench in ITA No. 3210/Del/2003 for the asst. yr. 1998 -99 vide which the Tribunal had deleted the penalty imposed by AO under Section 271(1)(c) of the Act.

(2.) THE facts in brief are that during the assessment proceedings, the AO from the perusal of the balance sheet noticed that the assessed had shown balance of Rs. 81,83,063 with Hong Kong Bank, Delhi representing dollar account. The assessed was required to show earnings out of this account on interest and exchange rate. Information was also called by the AO from the bank. Vide letter dt. 23rd June, 2001 the bank informed that as per the conversion rate of US on 31st March, 1998 the value of dollars in Indian currency was Rs. 92,98,123 as against Rs. 81,83,063 shown by the assessed. The difference of Rs. 11,15,052 was taxed as income from other sources.

(3.) THE AO thereafter started penalty proceedings and levied penalty of Rs. 3,08,203.