OMEC ENGINEERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN the instant case, the Tribunal referred the following question of law under Section 256(1) of the Income -tax Act, 1961 for opinion by this Court:

(2.) THE facts of the case lie in a narrow compass:

(3.) MR . D.V. Pathy, learned Counsel appearing for the assessee firstly drew our attention to the provisions of the Act and submitted that the purpose and objection of Section 269SS is only to prevent the laundering of black money. In the instant case, there is a concurrent finding that the transaction was genuine and therefore, the return filed by the assessee was accepted after the scrutiny under Section 143(3) of the Act. Learned Counsel further submitted that in absence of any finding by any of the authority that the transaction was mala fide and with the sole objection to disclose the concealed or undisclosed money, no penalty can be imposed. Learned Counsel relied upon the case of Kerala State Industrial Development Corporation Ltd. v. Commissioner of Income -tax , Hindustan Steel Ltd. v. State of Orissa .