We have heard Ms. Paurami Sheth, learned counsel appearing for the Revenue in this tax appeal. 2.0 In this tax appeal has been filed on the following proposed substantial question of law.
“Whether the Appellate Tribunal is right in law and on facts in deleting the penalty of Rs.6,55,150/ levied u/s.13 of the I.T. Act?”
3.0 The respondent assessee is a Private Limited Company which derives income from the investment in shares, debentures, securities of any company. The assessee has not filed any return under the Income Tax Act. The Assessing Officer issued Notice under Section 10 of Interest Tax Act, 1974 (hereinafter referred to as 'the Act' for short), and in response thereof the Assessee filed return showing that he is liable to pay 'Nil' interest under the Act. Assessing Officer did not accept the return of the assessee and determined the total interest liable to tax Rs. 6,72,59,968/ in appeal filed by the respondent, the CIT (Appeal) and thereafter the Income Tax Appellate Tribunal as the liability of the assessee which is as follows:
4.0 Thereafter the Assessing Officer found that the assessee was liable to pay penalty under Section 13 of the Act for not disclosing the interest. He levied the penalty at 100% on tax sought to be evaded. That is to say, Rs.6,55,150/. The penalty levied by the Assessing Officer has been set aside by CIT(A). The finding of the CIT(A) has been upheld by the Income Tax Appellate Tribunal and finding of fact has been recorded that the assessee was under the bona fide belief that he was not liable to pay interest tax and the finding of the CIT(A) in this regard was reasonable. The Tribunal also affirmed the finding of CIT(A) that the assessee has made complete disclosure of facts and issues which were debatable. Therefore, in our opinion, in view of finding recorded by the CIT(A) which has been affirmed by the Tribunal, it cannot be held that the assessee had any mens rea of evading tax.
5.0 For the aforesaid reasons, we do not find any illegality in the order passed by the CIT(A). We also do not find that any substantial question of law arises for consideration of this Court as proposed by the Revenue. This tax appeal is accordingly dismissed.
[V. M. SAHAI, J.] Amit [N. V. ANJARIA, J.]