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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 ..... the Chartered accountant. (ii) On the facts and circumstances of the case, the learned CIT (A) had grossly erred in confirming the penalty of Rs. 50,92,791/- u/s. 271(1)(c ) levied by Assessing Officer ignoring related legal decision cited by appellant. 2. This appeal is directed against the penalty order for the A.Y. 2005-06 passed u/s. 271(1)(c) of the Income Tax Act, 1961 (Act), on 25-03-2011 by ACIT-10(3), Mumbai and confirmed by the CIT(A) - 22, Mumbai vide his order dt. 05-08-2011. In this case, return of income was filed on 31-10-2005 declaring loss of Rs. 3,40,89,011/-. The assessment u/s. 143(3) was completed on 28-11-2008 determining loss at Rs. 1,83,72,750/-. The assessee had claimed deduction u/s. 10B without setting o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Hence, all the preconditions required for levying the penalty u/s. 271(1)(c) are satisfied in assessee's case. Hence, this is a fit case for levy of penalty u/s. 271(1)(c)." "Upon carefully considering the submissions made and after examining the assessee's case in the light of various judicial parameters as discussed above, I hold that in terms of Explanation-1 to Section 271(1)(c) of the Act, the assessee company has furnished inaccurate particulars of income and concealed its income to the extent of Rs. 1,39,17,582/-. Hence, this is a fit case for levy of penalty u/s. 271(1)(c) of the Act". 4. CIT(A) vide para 6 of his order confirmed the said penalty order in the following words: "As per explanation (1) to section 271(1)(c) where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vied. 6. Departmental Representative (DR) relied upon the order of the AO and the CIT(A). 7. We have heard both the parties and perused the material produced before us. CIT(A) dismissed the appeal filed by the appellant because on 31-10-2005 on the date of filing of return no judicial pronouncement was available in his favour. He has stated "All the decisions quoted by it relate to subsequent dates and hence in my opinion ...................................". In this regard, we will like to observe that availability/non-availability of a particular pronouncement on a particular date cannot be the basis for imposing penalty u/s. 271(1)(c). Pronouncement of a decision after a particular date does not affect the legal position existing on or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ook the view that since income from 10A unit was exempt, loss from 10A unit has to be ignored or alternatively the loss has to be adjusted against the profit of another 10A unit before allowing deduction under section 10A. We have gone through the provisions of Section 10A and find that as per the provisions in force prior to assessment year 2001-02, the profit and gain from the eligible undertaking was not to be included in the total income which meant that the income from the eligible unit was exempt from tax. However, provisions were amended with effect from assessment year 2001-02 and as per the amended provisions, the profit and gain derived by an eligible undertaking is required to be deducted from the total income. Thus, from A.Y. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Reliance, Petro Apex Court has laid down "guideline for imposing penalty u/s. 271(1)(c). Relevant portion of the order is reproduced here: "A glance at the provision of s. 271(1)(c) would suggest that in order to be covered, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. Present is not the case of concealment of the income. That is not the case of the Revenue either. As per Law Lexicon, the meaning of the word "particular" is a detail or details (in plural sense); the details of a claim, or the separate items of an account. Therefore, the word "particulars" used in the s. 271(1)(c) would embrace the meaning of the detail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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