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TMI Blog2014 (4) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ess claim made u/s 10B for inclusion of the interest income is not sustainable. Inclusion of insurance and freight charges – Held that:- Levy of penalty for inclusion of the insurance and freight charges within the excess claim, section 10B of the Act specifically excludes the insurance and freight charges from the export turnover - the assessee has not shown any tangible material or basis as to why the clear statutory provision which excludes the insurance and freight charges has been included by the assessee in the claim - the voluntary disclosure does not release the assessee from the mischief of penal proceedings - The law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he has to be absolv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Silvassa Unit was computed at Rs.1,64,64,282/- and in respect of Vapi Unit, it was computed at Rs.64,32,829/-. According to the AO, the assessee had claimed deduction under Section 10B on non-manufacturing receipts (interest receipts) and the assessee has reduced ineligible expenses for arriving at export turnover. In the quantum appeal, Ld.CIT(A) upheld the action of the AO in computing the deduction under Section 10B in respect of Silvassa Unit at Rs.1,69,01,993/- and in respect of Vapi Unit at Rs.65,82,332/-. Thus, the assessee made excess claim amounting to Rs.61,95,664/-. Consequently, in the penalty proceedings, a penalty of Rs.22,76,906/- has been levied by the AO being 100% tax ought to be evaded on account of the excess claim. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m, it is the contention of the Ld.AR that the same is out of a bonafide mistake and, hence, the confirmation of the levy of penalty is not justified. 4.1 On the other hand, the Ld.DR has filed the written submission and drawn our attention to the fact that the assessee claimed excess deduction against the clear cut provision of law and the same cannot be said to be a bonafide mistake on the part of the assessee. The Ld.DR further contended that while filing the return of income, the assessee has intentionally not given the breakup of the figures of the export turnover, total turnover etc. while claiming the higher deduction under Section 10B. The assessee has surrendered the excess claim of Rs.14,03,584/- in the revised computation vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in the said cases, we are of the considered opinion that the claim of the assessee in including the interest income in the claim made under section 10B is a debatable one where two views are possible. There are plethora of decisions to support the proposition that where the wrong claim has been made by the assessee but the issue is debatable, it cannot not be said that there is concealment of income. Therefore, the impugned levy of penalty on excess claim made under section 10B for inclusion of the interest income is not sustainable in law and hence the same to be deleted. Secondly, on the issue of levy of penalty for inclusion of the insurance and freight charges within the excess claim, it is pertinent to mention that section 10B of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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