The assessing officer considered the said premium received on redemption of debentures to be taxable under the head income from other sources while the respondent-assessee considered the same to be taxable under the head capital gains. In view of the fact that there is only a change of head of income and in the absence of any facts that the claim of the assessee was not bonafide, the Tribunal deleted the penalty imposed under Section 271(1)(c) of the Act. The decision of the Tribunal is based on finding of fact that there was an inadvertent mistake on the part of the assessee in including the interest received of 6% on the GOI Capital Index Bonds as interest received on tax free bonds.The revenue has not been able to point out that the finding of the Tribunal is perverse. In these circumstances, we see no reason to entertain the proposed question (ii).
HIGH COURT OF BOMBAY
INCOME TAX APPEAL (LOD) NO.2117 OF 2012
Commissioner of Income Tax-I, Mumbai
V/s.
M/s. Bennett Coleman & Co. Ltd.
DATED : 26TH FEBRUARY, 2013
AM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ.
ORDER
1. In this appeal by the revenue for the assessment year 1999-2000, following questions of law have been raised for our consideration :-
(i) Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in cancelling the penalty levied of Rs.26,25,000/- u/s.271(1)(c) in the light of decision of Supreme Court in the case of Goetzd India Ltd. (284 ITR 323) (SC) in respect of addition of Rs.75,00,000/- on account of interest received on 6% Government of India Capital Index tax free bonds which was accepted by the assessee during the course o assessment proceedings vide reply dated 28/2/2002 and no offered voluntarily ?
