COMMISSIONER OF INCOME TAX Vs. AMTEK AUTO LTD

JUDGEMENT

(1.) The revenue is in appeal under Section 260-A of the Income Tax Act, 1961 arising out of an order passed by Income Tax Appellate Tribunal, Delhi Bench 'A', New Delhi (for short "the Tribunal") on 31.3.2009 arising out of an assessment year 2001-02 whereby the penalty proceedings initiated against the assessee under Section 271(1)(c) of the Income Tax Act, 1961 were set aside.

(2.) The Assessing Officer levied penalty under Section 271(1)(c) in respect of additions made on account of loss on the sale of fixed asset, loss on sale of shares and expenses paid towards placement of preference shares. The Tribunal while accepting the appeal found that such additions made by the Assessing Officer are based upon difference of opinion whether such additions are to be treated as revenue expenditure or a capital expenditure and not because the assessee has made a false claim. It was also found that even after the additions are made, there is no change in the amount of tax payable by the assessee as the ultimate return of the assessee remains less than the amount assesseable under Section 115JB of the Act. The Revenue has claimed the following substantial questions of law:-