COMMISSIONER OF INCOME TAX Vs. DEBAN INTERNATIONAL LTD.

JUDGEMENT

(1.) The assessee in its income tax return had claimed payment of technical fee as well as expenses incurred on marketing research and advertisement and publicity as revenue expenses. The Assessing Officer in his assessment order came to the conclusion that these were the capital expenses. While treating it to be so, he also initiated penalty proceedings under Sec. 271(12)(c) of the Income -tax Act, 1961 and imposed penalty of Rs. 24,14,690. the CIT(A) reversed this order of the Assessing Officer. In further appeal filed by the revenue, the Income Tax Appellate Tribunal maintained the order of CIT(A). It is inter alia observed by the ITAT that even the perusal of the order of the Assessing Officer reveals that there was a divergence of opinion as to whether the expenditure is capital or revenue in nature. Issue involved was thus definitely debatable legal issue and simply non filing of appeal against the addition so made does not necessarily establish the act of concealment/furnishing of inaccurate particulars of income. The ITAT thus returned the finding of fact that it was the bona fide claim, which is debatable/contentious legal issue, could not invite penalty for concealment. In view of the aforesaid backdrop, we are of the opinion that no substantial question of law arises in this case for our consideration.

(2.) This appeal is accordingly dismissed.