Madhya Pradesh High Court
Commissioner Of Income Tax vs Spk Steels (P) Ltd. on 6 January, 2004
Equivalent citations: (2004)189CTR(MP)255, [2004]270ITR156(MP)
Author: Deepak Verma
Bench: Deepak Verma
JUDGMENT
1. This is an appeal under Section 260A of the IT Act, at the instance of the Revenue, against the order dt. 24th Jan., 2003, passed by Tribunal, Indore Bench, in ITA No. 157/Ind/97 for the asst. yr. 1994-95. Before the Tribunal also the appeal was made at the instance of the Revenue, which has since been dismissed giving rise to filing of the present appeal.
2. Brief facts, material for deciding the said appeal are mentioned hereinbelow. In the assessment proceedings of the assessee-respondent, loss of Rs. 5,40,103 on account of trading in shares was claimed. As the assessee-company was engaged in business of commission agent and Explanation to Section 73 was applicable, such loss was not allowed and show-cause notice for imposition of penalty under Section 271(1)(c) was issued.
3. In response to the said show-cause notice issued to the assessee, it was stated that loss was genuine but was not allowed because of the deeming provisions of Explanation to Section 73 and assessee was not aware of this. It was further submitted that all basic information was furnished and assessee had made full disclosure, therefore, penalty cannot be levied. AO did not find favour with these contentions and penalty amounting to Rs. 3,10,557 was imposed.
4. On appeal being preferred by the assessee against the said order of the AO, learned CIT(A) found that penalty was not exigible because assessee had filed the preliminary details along with the return and letter dt. 25th Jan., 1996. In the given circumstances it was held that it cannot be said that assessee has filed inaccurate particulars or concealed any income chargeable to tax. Thus, the penalty was deleted.
5. Against this order of the CIT(A), Revenue feeling aggrieved preferred an appeal before the Tribunal, which has dismissed the Revenue's-appeal relying on a judgment of the Supreme Court in Cement Marketing Company (I) Ltd. v. Asstt. CST (1980) 124 ITR 15 (SC). The Tribunal while dismissing the appeal has quoted the relevant para of the aforesaid judgment of the Supreme Court and found that there was no merit and substance in the appellant's appeal.
6. Against such findings of fact recorded by the Tribunal, we find that there is no substantial question of law involved in this appeal. The appeal being devoid of any merit and substance is hereby dismissed.