COMMISSIONER OF INCOME TAX Vs. FRANUS WAEZICARG

JUDGEMENT

(1.) No doubt the assessee had sought deduction under Sec. 80O even when the judgment of this Court in case of CIT v/s. Marketing Research Corpn. [1987] 61 CTR 204 against the assessee. However, we are still of the view that on that basis the assessee could not have been fastened with penalty under the provisions of Sec. 271(1)(c) of the Income Tax Act. It is because of the reason that judgment of Madras High Court in Addl. CIT v/s. Isthmian India Maritime (P.) Ltd. : [1978] 113 ITR 570 was in favour of assessee as per which deduction under Sec. 80O% was allowed. It is also a matter of record that view of the Madras High Court was later on accepted by the Bombay High Court in case of CIT v/s. Asian Cables Corpn. Ltd. [2003] : 262 ITR 535 1. In such a situation, observation of the Income Tax Appellate Tribunal that the assess made a claim with possibility of judgment of this Court being reversed on a future date could not be ruled out. The assessee may have made a claim in order to keep the -matter alive, however, it cannot be treated as a case of concealment of particulars relating to computation of deduction under Sec. 80O of the Act as likely pointed out by the Tribunal. We are, therefore, of the opinion that no substantial question of law arises. Dismissed.