Itxa/112/2010 Of The Commissioner Of Income Tax - 5 Mumbai v. West Coast Roller Mills Ltd

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.112 OF 2010 The Commissioner of Income Tax-5, Mumbai ..Appellant. V/s. M/s. West Coast Roller Mills Ltd. ..Respondent. Mr. Suresh Kumar for the appellant. Mr. Pankaj Toprani for the respondent. CORAM : J.P. DEVADHAR AND A.A. SAYED, JJ. DATED : 1ST AUGUST, 2011 P.C. :- 1.Whether the ITAT was justified in deleting the penalty levied under Section 271 (1)(c) of the Income Tax Act, 1961, is the question raised in this appeal. 2.In the present case, addition of Rs.13,00,000/- was made by the assessing officer in the assessment year in question on the ground that the assessee failed to explain the cash credit entry in his bank account. The assessee had received a cheque amounting to Rs.13,00,000/- from Milind Desai. The said cheque had bounced, as a result whereof, the credit entry was reversed by a debit entry in the assessee's bank account. As the assessee had failed to furnish necessary particulars from the bank, the assessing officer added the said amount to the income of the assessee. The said additions were were upheld by the appellate authorities. We are informed that in the appeal filed by the assessee under Section 260A of the Act, this Court has permitted the assessee to move the ITAT by way of a Miscellaneous Application. 3As regards the penalty imposed by the assessing officer under Section 271(1)(c) of the Act, the CIT(A) as also the ITAT have held that in the facts of the present case, the inability of the assessee to furnish details of the cash credit entry in the bank account of the assessee cannot be a ground to hold that the assessed had furnished inaccurate and insufficient particulars in respect of the cash credit entry. In these circumstances, we see no reason to interfere with the order of the order of the ITAT. Accordingly, the appeal is dismissed with no order as to costs. (A.A. SAYED, J.) (J.P. DEVADHAR, J.)