PR. COMMISSIONER OF INCOME TAX 9 vs. TDT COPPER LTD

In the quantum proceedings the Assessing Officer ('AO') by an order dated 11^^ June 2003 disallowed the following deductions claimed by the Assessee: a. Foreign exchange fluctuation loss; b. Fee paid to the Registrar of Companies; c. Repairs and maintenance expenses; and d. Prior period expenses. 6. The disallowance by the AO of the above deductions was upheld by the Commissioner of Income Tax (Appeals) [CIT(A)] in the quantum proceedings by an order dated 27^*^ February, 2004. 7. In the penalty proceedings the AO by order dated 30'*^ March 2005 imposed on the Assessee a penalty of 100% of the tax sought to be evaded, i.e., Rs. 62,09,206/-. The Assessee's appeal was allowed by the CIT (A) by an order dated 21®^ April, 2006 and the penalty was deleted. The CIT(A) held that the claims of the Assessee came to be disallowed due to a difference of opinion on the allowability of the deductions. Significantly, the CIT(A) observed that the Assessee had suffered huge losses and in the return of income for the AY in question showed a loss of Rs. 11,97,50,110/-. Even the assessed loss, as determined by the AO, was as high as Rs. 10,35,22,302/-. In the circumstances, the CIT(A) concluded that it could not be said that the Assessee intended to avoid or evade income tax by making the above claims. ITA 425/2016 Page 2 of 3

The above view of the CIT(A) in the penalty proceedings has been concurred with by the ITAT in the impugned order dated 23'"'' September, 2015. 9. Having heard the learned counsel for the Revenue and having perused Section 271(l)(c) read with the Explanation and the decision of this Court dated 4^*^ February 2016 in ITA No. 439/2003 {Roger Enterprises P. Ltd. v. Commissioner of Income Tax Delhi), the Court is not persuaded to hold that the concurrent findings of the CIT(A) and the ITAT on the non-applicability of the imposition of penalty suffers from any perversity or gives rise to any substantial question of law. 10. The appeal is dismissed. S.MURALIDHAR, J P NAJMirWAZIRI, J JULY 22, 2016 kk ITA 425/2016 Page 3 of 3