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TMI Blog2014 (1) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... )(c) of the Income-tax Act, 1961 to the extent of Rs.97,96,497/-against the penalty levied by the Assessing Officer at Rs.1,00,76,728/-. On the other hand, the Revenue is aggrieved against the order of the CIT(A) for reducing the penalty amount to Rs.97,96,497/- from Rs.1,00,76,728/-. 3. The brief facts of the case are that the assessee filed return of income declaring its income at Rs.1,11,13,20,171/-. The Assessing Officer while making the assessment u/s 143(3) of the I.T.Act, 1961, computed the income of the assessee at Rs.1,26,81,16,200/- and thus made addition of Rs.33,28,02,917/- on account of various disallowances. Penalty proceedings u/s 271(1)(c) were initiated against the assessee for furnishing inaccurate particulars of income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act is concerned, the Tribunal has partly upheld the disallowance following the view taken in the earlier years. However, regarding denial of deduction u/s 80-IB on certain items of miscellaneous income, the Tribunal has restored the matter to the file of A.O. for a fresh consideration in view of the judgment of the Hon'ble Supreme Court in the case of 'Liberty India' (2009) 317 ITR 218 (SC). 4. We have heard the learned Representatives of the parties. We will hereby deal with all the issues separately regarding the justification or otherwise of levy of penalty. 4.1 Disallowance u/s 145A. 4.1.1 It may be observed that in quantum appeal the Tribunal has set aside the order of the Ld.CIT(A) and the matter has been remitted to AO for rewor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this respect. Hence the penalty levied by the A.O. and upheld by the learned CIT(A) for disallowance of provision for cash discount is hereby ordered to be deleted. 4.3 Disallowance of provision for Executive Retirement Scheme. 4.3.1 It may be observed that in quantum proceedings, the matter has been restored to the file of A.O. for deciding the issue afresh in the light of section 35DDA of the Act. Since the addition made by the A.O. and confirmed by the learned CIT(A) has already been set aside by the Tribunal and the matter has been restored to the file of A.O. for fresh adjudication, the very basis for levy of penalty has ceased to exist. Therefore, the penalty imposed under the above head is hereby ordered to be deleted. However, af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the purpose of the business. In the case in hand also ld. AR has submitted that the provision for payment of bonus was made out of contractual liabilities and not on account of statutory liability under the Bonus Act. He has further submitted that merely, because the issue was not pressed in the quantum appeal, that does not ipso facto mean that the penalty is attracted in the case. Even though the plea of the assessee has not been accepted in the quantum proceedings or even the issue was not pressed, still, if the assessee gives a bona fide explanation of his act then under such circumstances, penalty cannot be levied merely, because the authorities were not in agreement with the view of the assessee. The Hon'ble Supreme Court in Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned AR could not bring out as to how the levy of penalty was not justified in relation to the disallowance, upheld by the Tribunal. He has prayed that the penalty be deleted in respect of the matter which has been restored back to the file of A.O. for decision afresh. Accordingly, we uphold the levy of penalty for the matter in respect of which the disallowance has been upheld by the Tribunal. However, the matter which has been restored back to the file of A.O. for deciding the issue afresh, the very basis for the penalty has ceased exist. Accordingly, for that matter, we leave it to the AO to decide whether the penalty proceedings are to be initiated in view of the fresh assessment order pertaining to the matter in question. If the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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