2006 (7) TMI 176

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..... ribunal, Delhi Bench "C", in I.T.A. 2607/Del/2001 for the assessment year 1997-98. A penalty of Rs. 4,58,393 was levied against the assessee under section 271(1)(c) of the Income-tax Act, 1961. This has been set aside by the impugned order. The assessee produces TV serials and returned a total income of Rs. 15,60,920, which was assessed to Rs. 24,94,950 under section 143(3) of the Act. The asses .....

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..... ceedings. In appeal, the Commissioner of Income-tax (Appeals) in his order dated March 22, 2001, relied upon the audit report and held that correct particulars were given by the assessee for the year under consideration. He was of the view that assessment proceedings were different from penalty proceedings and since the assessee had revised its computation of income even before the Assessing Offi .....

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..... assessee was not an afterthought but was genuine and made well in time. The Tribunal also accepted the view that since the assessee was following the mercantile system of accounting, the liability had accrued and the assessee was entitled to claim a deduction during the relevant year. After hearing learned counsel for the parties and considering the facts and circumstances of the case, we are of .....

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