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TMI Blog2012 (4) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... be set off against the normal business income - Provision of s. 271(1)(c) are valid when there exists concealment of the particulars of the income of the assessee or the assessee have furnished inaccurate particulars of his income - no information given in the return was found to be incorrect or inaccurate – in favour of assessee. - IT Appeal No. 7085 (Mum.) of 2011 - - - Dated:- 25-4-2012 - D.K. AGARWAL, RAJENDRA, JJ. ORDER Rajendra, Accountant Member The following Grounds of Appeal were filed by the Appellant: ( i ) On the facts and circumstances of the case, the learned CIT (A) had grossly erred in confirming the penalty imposed by AO by applying explanation 1 to section 271(c) thereby, completing ignoring the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to justify its claim of deduction u/s. 10B in respect of it's Pune Unit before setting off the same against the loss of another 10B unit during the year and thus it had furnished inaccurate particulars of it's income and concealed the particulars of it's income to the extent of claim of above deduction. Thus, the assessee's case is squarely covered by the Explanation-1 to section 271(1)(c) as also plain and clear concealment of income and furnishing inaccurate particulars of income". "Section 273B of the Act provides that no penalty is to be levied in the case of an assessee under the various sections specified therein if he proves that there was reasonable cause for the said failure. In the instant case, the assessee company has failed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s. 10A without setting off the loss of the order unit was not bonafide ". 5. Authorised Representative (AR) of the appellant submitted that the appellant was maintaining separate books of accounts for all the units, that it had filed separate audit reports for each of the units, that appellant had not filed inaccurate particulars of income or had concealed particulars of income. He relied upon the case of Hindustan Unilever Ltd., 325 ITR 102 (Bombay). Drawing over attention to page 24 of the said order he submitted that loss sustained by the Pune unit was eligible for set off against the profit of other units. He also relied upon the cases of FCI Technology Services Ltd., 48 SOT 460 (Cochin). Capgemini India (P) Ltd., (C Bench, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rming the penalty cannot be endorsed. 8. Secondly, claim made by the appellant with regard to section 10-A was based on the advice of a professional person i.e., C.A. Setting off the loss of a unit against the income of the another unit can hardly be termed filing of inaccurate particulars or 'concealment of income'. The said issue has been logically deliberated upon in the case of Capgemini India (P) Ltd., in para 22 of the said order 'C' Bench of ITAT, Mumbai has held as under: "We have perused the records and considered the rival contentions carefully. The dispute is regarding set off of loss of a 10A unit against the taxable profit of other units. The assessee had four 10A units in respect of which deduction under section 10A was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as withdrawn which was consistent with the new scheme of section 10A which is a deduction provision and not exemption provision from assessment year 2001-02. Therefore, the loss from 10A unit has to be adjusted against taxable profits of other units after deduction under section 10A has been allowed in respect of each eligible unit. Same view has been taken by the Hon'ble High Court of Mumbai in case of Hindustan Unilever Ltd. , ( supra ) in which it was held that deduction has to be allowed in respect of three eligible units and loss of the fourth 10A unit has to be set off against the normal business income. The Tribunal in case of Honeywell International India (P) Ltd. , ( supra ) has also followed the same view. Therefore, respectfull ..... X X X X Extracts X X X X X X X X Extracts X X X X
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