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2014 (8) TMI 518 - ITAT DELHIPenalty u/s 271(1)(c) disallowance of expenditure - Under-valuation of work in progress - Excess claim of deduction u/s 80IC - Held that:- The CIT(A) has deleted penalty because the assessee has claimed expenditure and the claim was not accepted or was not acceptable to the revenue, that too by itself, would not attract penalty u/s 271(1)( c) of the Act Relying upon CIT vs Reliance Petroproducts Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] the order of the CIT(A) for setting aside the penalty on account of part disallowance pertaining to claim of software expenses of the assessee is upheld Decided against Revenue. Under-valuation of work in progress Held that:- As decided in assessees own case for the earlier assessment year, it has been held that AO has not brought on record any material to show that the, assessee has furnished any Inaccurate particulars of income but on the contrary on the basis of estimation the AO has worked out the value of work-in-progress at a figure different from what is stated by the assessee which by no stretch of imagination can be equated with concealment of income so as to attract penal provisions it cannot be said that there was conscious malafide act of the assessee for concealment of particulars of income so as to attract the penalty u/s 271(1)( c) of the Act Decided against Revenue. Excess claim of deduction u/s 80IC Held that:- Merely because of part disallowance on account of re-computation of deduction u/s 80IC of the Act, it cannot be said that the assessee concealed or furnished wrong particulars of its income which attracts penalty u/s 271(1)(c) of the Act because part disallowance of claim of assessee cannot be said to be a conscious and mala fide act of concealment or furnishing of inaccurate particulars of its income because the disallowance made by the AO on deduction claimed by the assessee u/s 80IC of the Act was finally made on the direction of the Tribunal to the AO to recompute the deduction of the assessee after furnishing and examining relevant facts and material Decided against Revenue.
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