COMMISSIONER OF INCOME TAX Vs. HEROS PUBLICITY SERVICES

JUDGEMENT

(1.) THE short point which arises for consideration in the present matter is whether the Department was entitled to levy penalty under S. 271B of the IT Act, 1961. The Tribunal has deleted the penalty. Hence, the CIT has come by way of appeal. The facts giving rise to this appeal, briefly, are as follows :

(2.) AT the outset, we may mention that our order is based only on the findings of fact recorded by the Tribunal. The question whether the intention to evade the tax is or is not the ingredient of s. 271B is left open. On the facts, we find that the media (Doordarshan) had insisted on the contracts being entered into with the advertising agencies mainly to secure payments. However, the facts show that the assessee acted on behalf of the advertisers for commission. That the assessee had obtained letters of authority from their advertisers to enter into a contract with Doordarshan and AIR. That the assessee acted only as agents for commission. On the facts, therefore, we are not inclined to interfere with the order passed by the Tribunal. In the circumstances, the appeal stands dismissed.