IN THE HIGH COURT OF DELHI AT NEW DELHI
6.
ITA 969/2010
.
COMMISSIONER OF INCOME TAX ..... Appellant
Through: Mrs. P.L. Bansal, Adv.
versus
.
ASIA GREENS LTD .....
Respondent
Through: None
.
CORAM:
HON'BLE THE CHIEF JUSTICE
HON'BLE MR. JUSTICE MANMOHAN
.
O R D E R
30.07.2010
CM 12869/2010
.
This is an application for delay in re-filing the appeal. Heard learned
counsel for the appellant. Regard being had to the averments made in the
application, delay in re-filing the appeal is condoned.
The application stands disposed of.
ITA 969/2010
Calling in question the justifiability of the order passed by the Income
Tax Appellate Tribunal, Delhi Bench ?A? (for short ?the tribunal?) in ITA No.
1172/Del/2007 pertaining to assessment year 2001-2002, the present appeal has
been preferred under Section 260A of the Income Tax Act, 1961 (for short ?the
Act?).
ITA 969/2010
Page 1 of 3
The assessee was proceeded under Section 271(1)(c) of the Act and
eventually a penalty amounting to Rs.11,01,764/- was imposed on the ground that
assessee had shown Rs.60,35,750/- as agricultural income which was disallowed by
.
.
the assessing officer and on an appeal being preferred, the CIT(A) reduced it to
Rs.30 lacs.
After the disposal of the appeal relating to the quantum in the penalty
proceedings, the assessee offered an explanation which was found to be bona fide
by the tribunal. Be it noted, the tribunal in the order impugned has referred
to the order passed by CIT(A) on the quantum of appeal and held as under:
.
?16. On reading the aforesaid Tribunal?s order, it is seen that the fact that
assessee has undertaken agricultural operation has not been disputed. The
dispute was only with regard to the quantum of the agricultural income earned by
the assessee. The amount of agricultural income shown by assessee to
Rs.60,36,750/- has been found to be excessive incurred by the assessee. The
Tribunal has also observed that assessee?s claim regarding the scope of
agricultural operation and income is not fully supported by any acceptable
evidence or material. But there is no finding that the assessee has made a
false claim or the amount of agricultural income shown by the assessee was
earned from any other source or soruces but falsely shown under the head
?agricultural income?. It is the case where assessee?s claim has been rejected
by drawing a reasonable presumptions and
.
ITA 969/2010
Page 2 of 3
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inferences, and not by establishing and proving that the assessee?s explanation
was false. We, therefore, hold that it is not a fit case where penalty can be
levied u/s 271(1)(c) in as much as the assessee has given a bonafide explanation
regarding the scope of extent of agricultural income through might not have been
accepted by the department for want of conclusive and sufficient evidences.?
.
In our considered opinion, the view expressed by the tribunal is totally
in the realm of facts and it cannot be said that acceptance of the explanation
offered by the assessee would tantamount to any kind of perversity in
delineation of the issue.
Thus, we do not perceive any merit in this appeal and accordingly the
same stands dismissed in limine.
.
.
.
CHIEF JUSTICE
.
.
.
MANMOHAN, J
JULY 30, 2010
pk
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ITA 969/2010
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