Itxa/1730/2011 Of The Commissioner Of Income Tax -V v. Hans Christian Gass

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL LOD) NO.2209 OF 2010 ANDINCOME TAX APPEAL LOD) NO.2210 OF 2010 AND INCOME TAX APPEAL LOD) NO.2211 OF 2010 AND INCOME TAX APPEAL LOD) NO.2212 OF 2010 AND INCOME TAX APPEAL LOD) NO.2213 OF 2010 AND INCOME TAX APPEAL LOD) NO.2214 OF 2010 The Commissioner of Income Tax-V ..Appellant. V/s. Hans Christian Gass ..Respondent. Mr. Vimal Gupta for the appellant. None for the respondent. CORAM : J.P. DEVADHAR AND SMT. R.P.SONDURBALDOTA JJ.DATED : 22ND JUNE, 2011 P.C. :- 1.Heard learned counsel for the appellant. None present for the respondent. 2.In all these appeals, the revenue is aggrieved by the order of the ITAT whereby the penalty levied under section 271(1)(c) of the Income Tax Act, 1961 has been deleted. 3.The assessee was working as a Managing Director of Sandvik Asia Ltd. (SAL) and apart from salary had received some emoluments outside India from Sandvik Group. The said amount received from Sandvik was towards reimbursement of the tax liability incurred by the assessee in India. In the return of income, the assessee had not offered the above reimbursed amount to tax under the bonafide belief that the same were not taxable. However, when a query was raised by the assessing officer during the assessment proceedings, the assessee immediately offered that amount to tax for all the years. The penalty imposed under section 271(1)(c) of the Act by the the assessing officer was deleted by the ITAT after recording detailed reasons that it was a case of bonafide mistake and that there was no intention to evade tax. The discretion exercised by the ITAT in accepting the explanation given by the assessee is reasonable and we see no reason to interfere with the decision of the Tribunal which is based on finding of facts. Accordingly, all these appeals are dismissed with no order as to costs. (SMT. R.P.SONDURBALDOTA, J.) (J.P. DEVADHAR, J.)