THIRUPATHY KUMAR KHEMKA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE vexed, but substantial question of law that arises for consideration in the respective appeals is

(2.) 2. 1. Both the appeals are related to the same assessment year with identical facts, preferred by two different assessees. The appellants/assessees are individuals assessed to tax. For the assessment year 1996-97, the assessees filed their return of income on 29. 11. 1996. The returns were processed under Section 143 (1) (a) of the Income Tax Act, 1961 (for brevity "act"), and notice under Section 143 (2) of the Act was issued for scrutiny. After hearing the representative of the assessees, the assessment was completed under Section 143 (3) of the Act.

(3.) THE centre of controversy that arises for our consideration, as focussed in the vexed question of law, is whether it was incumbent on the part of the assessees to prove the existence of the bona fide belief that the interest under Section 244a was not taxable, beyond the shadow of doubt, in the context of levying penalty under Section 271 (1) (c) of the Act.