1981 (7) TMI 127

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..... sake of convenience and are disposed of by a common order. All the three appeals have been filed by the respective assessee and arise out of the orders of the AAC of Income-tax, B-Range, Jaipur. 2. The common ground in all the three appeals is that the ld. AAC was not justified in sustaining the order of the ITO imposing penalties u/s. 140A(3) of the IT Act, 1961. The facts relating to the impo .....

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..... his amount before filing the return of income by the assessee. Since according to the ITO the assessee failed to comply with the provisions of s. 140A, he issued show-cause-notice requiring the assessee to explain as to why penalty should not be imposed for failure to comply with the provisions of s. 140A of the Act. In reply thereto assessee stated that he was under the impression that tax paid b .....

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..... ment of the said tax was continued. On appeal, it was submitted before the AAC on behalf of the assessee that the assessee was posited on deputation in Iran and salary income from Iran was also included in his income. The Iranian authorities had deducted income as per Iranian IT Act and the assessee was under the genuine belief that tax deducted in Iran would be given full credit while calculating .....

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..... es worked out on his total income under the IT Act. He therefore, upheld the penalty imposed by the ITO. 4. The assessee is aggrieved against the order of the AAC and is in second appeal before the Appellate Tribunal. The same arguments as were advanced before the authorities below on behalf of the assessee have been repeated before us. The ld. D.R. on the other hand has supported the orders of .....

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..... the assessee was, therefore, under a bonafide belief that entire amount of tax deducted at source at Iran was to be given credit while computing liability of tax under the IT Act. 1961. That being so, we are unable to sustain the orders of the authorities below. The same are, therefore, cancelled. This decision equally applied to the other two appeals. Orders of the authorities below in respect of .....

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