COMMISSIONER OF INCOME TAX Vs. SIDHARTHA ENTERPRISES

JUDGEMENT

(1.) THE revenue has preferred this appeal under Section 260 -A of the Income Tax Act, 1961 (in short, 'the Act') against the order of the Income Tax Appellate Tribunal, Chandigarh, passed in ITA No. 136/CHD/2008 dated 30.5.2008, for the assessment year 2005 -06, proposing to raise following substantial questions of law, for opinion of this Court:

(2.) THE assessee in its return claimed set off on account of capital loss against profits of business, which was disallowed and penalty proceedings were initiated. Finally, penalty was imposed for 'furnishing inaccurate particulars'. The CIT(A) deleted the penalty holding that set off was claimed by counsel's negligence which view was upheld by the Tribunal. The Tribunal observed as under:"

(3.) LEARNED Counsel for the revenue submits that even if claim of set -off of capital loss against profits of business was by negligence or mistake, the fact remains that the particulars of income furnished were not correct and willful concealment not being an essential requirement for levy of penalty under Section 271(1)(c) of the Act, as held by the Hon'ble Supreme Court in Union of India v. : [2008]306ITR277(SC) , the penalty could not be deleted.