KAMAL BASHA Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE revenue on appeal against the order of the Income Tax Appellate Tribunal, Madras 'B' Bench, Chennai, 26.09.2008 passed in ITA No.1875/Mds/07 in respect of the assessment year 2003-04.

(2.) THE material facts as culled out from the statement of facts in the memorandum of grounds of appeal are as follows:-

(3.) EVEN as regards the plea taken before the first appellate authority that the remission was on account of defective goods, the assessee did not substantiate by adducing necessary evidence or materials with regard to the nature of the goods, the details of purchases, out of which, the defective goods were segregated and whether any claim made by the assessee in respect of the defective goods against which the remission has been made by the assessee and offered for taxation. Thus, it is evident that the assessee was not able to establish the reasoning adduced by him. As such the penalty is warranted. Reliance placed on the judgment of the Division Bench of this Court in the case of India Cane Agencies vs. Deputy Commissioner of Income Tax reported in 275 ITR 430, is a misplaced reliance, because, it was held in that case as follows:-