2013 (3) TMI 763

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..... of law have been proposed for our consideration. a) Whether on the facts and in the circumstances of the case, the Tribunal was justified in confirming the deletion of the penalty under Section 271(1)(c) of the Income Tax Act, 1961 ? b) Whether on the facts and in the circumstances of the case, the Tribunal was justified in coming to the conclusion that the assessee was under the bona fide .....

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..... lakhs was added to the income of the assessee in quantum proceedings and penalty proceedings were also initiated. 4. The respondent assessee pointed out that by mistake they have computed the book value of the asset as per the Companies Act instead of computing the same under the Income Tax Act, 1961 ('Act' for short). The respondent assessee also pointed out that there was no inten .....

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..... ecords the fact that as the machinery was converted into stock-in-trade at book value, there was no short term capital gain or loss in such transaction. Hence, the mistake was genuine and bona fide. The Tribunal placed reliance upon the decision of the Apex Court in the matter of Commissioner of Income Tax V/s. Reliance Petroproducts Private Limited reported in (2010) 322 ITR 158 (SC) and held tha .....

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