9911796707
TMI Blog2012 (6) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... SEL, GOI(TAXES), SRI.JOSE JOSEPH, SC, FOR INCOME TAX J U D G M E N T Ramachandran Nair, J Heard senior counsel Sri.T.M.Sreedharan appearing for the appellant and the learned Standing Counsel for Revenue. 2. The question raised pertains to levy of penalty u/s 158BFA(2) of the I.T.Act, that is confirmed by the Tribunal. The appellant/assessee was subject to search and notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y confirming the penalty stating that it is mandatory. It is against this order the assessee is before us in this second appeal. 3. Counsel for the assessee relied on the decision of the Bombay High Court reported in 312 ITR page 112 wherein the said High Court has taken a view that penalty u/s 158BFA(2) is discretionary. However, the Standing Counsel submitted that the decision of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter rejection of cash flow statement. We feel some leniency can be shown to the assessee in respect of this amount because with the tax and penalty and the interest for delay in payment of tax the assessee would otherwise end up paying more than the undisclosed income. We, therefore, allow the appeal in part by excluding penalty on Rs.1,15,000/- and by limiting penalty on Rs.3 lakhs. The appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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