CIT Vs. HANS CHRISTIAN GASS

JUDGEMENT

(1.) HEARD learned counsel for the appellant. None present for the respondent. In all these appeals, the revenue is aggrieved by the order of the ITAT whereby the penalty levied under section 271(1)(c) of the Income Tax Act, 1961 has been deleted.

(2.) THE assessee was working as a Managing Director of Sandvik Asia Ltd. (SAL) and apart from salary had received some emoluments outside India from Sandvik Group. The said amount received from Sandvik was towards reimbursement of the tax liability incurred by the assessee in India. In the return of income, the assessee had not offered the above reimbursed amount to tax under the bona fide belief that the same were not taxable. However, when a query was raised by the assessing officer during the assessment proceedings, the assessee immediately offered that amount to tax for all the years. The penalty imposed under section 271(1)(c) of the Act by the assessing officer was deleted by the ITAT after recording detailed reasons that it was a case of bona fide mistake and that there was no intention to evade tax. The discretion exercised by the ITAT in accepting the explanation given by the assessee is reasonable and we see no reason to interfere with the decision of the Tribunal which is based on finding of facts. Accordingly, all these appeals are dismissed with no order as to costs.