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TMI Blog2015 (10) TMI 1475X X X X Extracts X X X X X X X X Extracts X X X X ..... interpreted differently. This means that only on the facts, there was a difference in opinion, as to how to characterise the income/loss. In such a case, where there is a difference of opinion amongst the Revenue authorities themselves, penalty, in such a case is not exigible. We, therefore, set aside the order of the Commissioner of Income-tax (Appeals) and direct the Assessing Officer to cancel the penalty. - Decided in favour of assessee. - ITA No. : 2335/Mum/2012 - - - Dated:- 4-3-2015 - SHRI R.C. SHARMA AND SHRI VIVEK VARMA, JJ. For the Appellant : Dr K Shivaram, Ms. Neelam Jadhav For the Respondent : Shri Jitendra Kumar ORDER Vivek Varma (Judicial Member).- The appeal is filed by the assessee against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals), holding the same to be business loss. 6. In the interim period, the Assessing Officer had initiated penalty proceedings under section 271(1)(c) on this issue, as the explanation offered by the assessee was not acceptable as bona fide, as per Explanation 1 to section 271(1)(c). The Assessing Officer, therefore, computed the penalty at ₹ 9,10,000 and levied the same on the assessee. 7. In the appeal proceedings before the Commissioner of Income-tax (Appeals), the assessee reiterated the facts of the case, as to how the sum of ₹ 27,00,00 is irrecoverable. The Commissioner of Income-tax (Appeals) sustained the order of the Assessing Officer, levying the penalty, relying on the decision of Union of India v. Dharame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce on the case of Dharamendra Textile Processors [2008] 306 ITR 277 (SC), but, at the time when the Commissioner of Income-tax (Appeals) passed the impugned order, the following cases : (i) CIT v. Reliance Petroproducts P. Ltd. [2010] 322 ITR 158 (SC) ; (ii) CIT v. Atul Mohan Bindal [2009] 317 ITR 1 (SC) ; and (iii) Shree Krishna Electricals v. State of Tamil Nadu [1969] 23 VST 249 (SC). diluting the ratio of Dharamendra Textile Processors [2008] 306 ITR 277 (SC) were already in place, rendering the decision of Dharamendra Textiles as otiose. When we look at the decision of Reliance Petroproducts Pvt. Ltd. [2010] 322 ITR 158 (SC), the hon'ble Supreme Court has very categorically held that penalty cannot be visited if the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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