2008 (5) TMI 292 - AT - Income Tax

Summary

Issues involved: Appeal against imposition of penalty u/s 271(1)(c) of the Income Tax Act by the Assessing Officer.

Summary:
The appellant, a tour operator company, claimed deduction u/s 80HHD of the Act for the assessment year 1997-98. The company applied for approval from the prescribed authority before filing the return of income, but the approval was granted after the filing date. The company later withdrew the deduction claim during assessment proceedings. The Assessing Officer imposed a penalty for furnishing inaccurate particulars of income. The CIT(A) upheld the penalty, stating that the withdrawal was not voluntary and the claim was not bona fide. However, the ITAT Bombay-F held that there was no concealment of income or furnishing of inaccurate particulars. The appellant had disclosed all facts and withdrew the claim before the assessment was completed. The penalty was canceled, and the appeal was allowed.