Itxa/829/2008 Of The Commissioner Of Income Tax-9, Mumbai v. M/S.narita Investments Pvt.ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.829 OF 2008 The Commissioner of Income Tax,..AppellantVs.M/s.Narita Investments Pvt.Ltd...RespondentMr.Suresh Kumar for the Appellant.Ms.Vasanti B.Patel for the Respondent.CORAM :- DR.S.RADHAKRISHNAN &S.J.KATHAWALLA, JJ.DATE : 26TH AUGUST, 2008P.C.1.Heard the learned Counsel for the parties. Bythe above Appeal, the following substantial questionof law sought to be raised:"Whether on the facts and in the circumstancesof the case, the Hon’ble Tribunal wasjustified in law in directing the AssessingOfficer to delete the penalty levied underSection 271(1)(c) amounting to Rs.4.34crores?"2.We have perused the judgment dated 26thJune,2007 passed by the Income Tax Appellate Tribunal.In paragraph 10 of the said order, the Tribunal hadcategorically observed that;10. Having carefully examined this disclosuremade by the Assessee while filing the returnof income we are of the view that though theassessee has changed the method of valuationof closing stock and claimed loss against theprofit earned in the commercial project itcannot be held that the assessee is guilty ofconcealment or furnishing inaccurateparticulars...................... categorically given the following finding: Assessee was not under the bonafide belief in making a change in the method of valuation. (1)(c) which was introduced in the year 2008, however with retrospective effect from 1st April,1989. (S.J.KATHAWALLA,J.) (DR.S.RADHAKRISHNAN,J.)