The Tribunal held that merely because the assessee on bona fide belief or misconception that it did not have permanent establishment in India or on the basis of certificate issued under section 197 of the Act by the Department, had chosen to compute the tax payable on its income under section 44BBB of the Act, that itself could not entail the imposition of penalty. Therefore, the penalty imposed was to be deleted. (AY.  2004-05, 2005-06)