Assessing Officer has observed that the contentions of the Assessee are considered, but found not acceptable. From the contentions, what has been deduced is that the particulars of income filed by the Assessee were not correct or to put it in the language of the Act, the Assessee has filed inaccurate particulars of its income. The Assessing Officer has observed that the Assessee has not stated any reasonable cause for failure on its part to report its true and correct profit. The Assessing Officer has then perused the explanation given and found
that same will not absolve the Assessee from penal proceedings.
However, the Tribunal in paragraph 6 of the impugned order has held that this was not a simple case of increase of authorized capital because the Assessee has sought to issue to the IDBI Bank the optional convertible debentures in view of the restructuring scheme of the said Bank. The Assessee was not trying to seek any tax advantage because even after disallowance of this expenditure, huge loss was assessed. In such
circumstances in the opinion of the Tribunal, this was not the case falling within the purview of the provisions enabling imposition of penalty.
In any event this was not the matter which would enable the Assessing Officer to exercise his discretion and impose penalty on the grounds permissible and particularly under Section 271(1)(c) of the Income Tax Act, 1961. To our mind, such findings of fact and rendered in
the light of legal provision, do not give rise to any substantial question of law.