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TMI Blog2013 (3) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of the debt made by the assessee was bona fide and honest. The basis adopted by the Tribunal in the quantum proceedings to determine the income of the assessee from assignment business was entirely different from the one adopted by the assessee as also the basis adopted by the assessing officer and, therefore, it is clear that the issue of determination of exact income of the assessee from assignment business was not free from debate on which different views were possible. Accordingly, the Tribunal held that in the facts and circumstances of the case, it cannot be said that the assessee had concealed income so as to attract penalty under Section 271(1)(c) of the Act. The decision of the Tribunal in deleting the penalty inter alia on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assigned sales tax liability worked out at Rs.10.98 crores and reduction in the value of receivables worked out at Rs.6.36 crores, the assessee claimed to have earned net income of Rs.4.62 crores (Rs.10.98 crores Rs.6.36 crores) from the transaction of assignment with MIRC and offered the same to tax in the assessment year in question i.e. A.Y. 2004-05. 4. The assessing officer was of the opinion that the assignment transaction between the assessee and MIRC was a sham transaction / colourable device and accordingly brought to tax an amount of Rs.26.68 crores in the hands of MIRC on account of cessation of sales tax liability under Section 41(1) of the Income Tax Act. The assessing officer further held that the assessee had made pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. The said penalty was upheld by the Commissioner of Income Tax (A). 7. By the impugned order, the Tribunal deleted the penalty on the ground that the assessee had disclosed the accounting policy adopted by it in determining profits from the assignment of business, that the assignment of liability and purchase of debts were two integral part of assignment of business and the net realizable value of the debt made by the assessee was bona fide and honest. The Tribunal further held that the basis adopted by the Tribunal in the quantum proceedings to determine the income of the assessee from assignment business was entirely different from the one adopted by the assessee as also the basis adopted by the assessing officer and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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