2012 (8) TMI 146 - HC - Income Tax

Penalty levied under section 271(1)(c) assessee received reimbursement of the tax liability incurred by the assessee in India - assessee had not offered the above reimbursed amount to tax under the bonafide belief that the same were not taxable Held that - It was a case of bonafide mistake and that there was no intention to evade tax - appeals are dismissed

Summary

The Bombay High Court dismissed the appeal by the revenue against the ITAT's decision to delete the penalty under section 271(1)(c) of the Income Tax Act, 1961 imposed on an assessee who had received emoluments from Sandvik Group. The ITAT found it to be a bonafide mistake with no intention to evade tax, leading to the penalty deletion. The High Court upheld the ITAT's decision.