If two views were possible and the assessee claimed deduction on the basis of advice of consultants, penalty can not be imposed
CIT Vs. Kas Movie Pvt. Ltd (Delhi High Court) – For the purpose of claiming benefit under Section 80HHF of the Act, ownership of goods is not essential as held by the Supreme Court in the case of Sea Pearl Industries and Others Vs. Commissioner of Income Tax, 247 ITR 578. Thus, when two views were possible and the assessee made the claim on the basis of advice of the consultants, it was not a case where the penalty should have been imposed.
In The High Court Of Delhi At New Delhi
ITA No. 793 of 2011
Pronounced On: 18th November, 2011
Commissioner of Income Tax- II
Vs
KAS Movie Pvt. Ltd.
ORDER
A.K. SIKRI, Acting Chief Justice
1. This appeal was admitted on the following substantial question of law:
“Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in law in deleting penalty of Rs. 10,94,657/- levied by AO on account of filing inaccurate particulars of income/ concealment of income pertaining to deduction under Section 80HHF of the Income Tax Act, 1961?”
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