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TMI Blog2015 (10) TMI 1431X X X X Extracts X X X X X X X X Extracts X X X X ..... , that by itself would not, in our opinion attract the penalty under Section 271(1)(c) In the instant case before us, the enhancement of ₹ 50,00,000/- was made by CIT(A). the penalty proceedings should be commenced in the course of, and before the completion of the proceedings in which the income tax authority is satisfied about the default which attracts the penalty. Here in this case the CIT(A) was satisfied and completed the proceedings by making enhancement. However, he has not initiated any penalty proceeding. Hence no merit in the penalty levied with reference to variation in the amount of claim for deduction u/s.10A - Decided in favour of assessee. - ITA No.1287/Mum/2013 - - - Dated:- 10-6-2015 - SHRI R.C.SHARMA AND MS. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also be excluded from the total turnover. 5. With respect to the additions discussed above, the AO levied penalty u/s.271(1)(c) of the Act and the same was confirmed by the CIT(A) on the plea that assessee has wrongly claimed expenditure of eligible unit against other unit. Against the order of CIT(A) assessee is in further appeal before us. 6. It was contended by the ld. AR that mainly penalty is imposed with reference to income of ₹ 50 lakhs enhanced by the AO by revising the claim of deduction u/s.10A. He contended that since the enhancement was done by CIT(A), therefore, he should initiate the penalty and record his satisfaction for the same, however, the CIT(A) has not initiated penalty in his order, therefore, penalty im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue then in case of every return where the claim made is not accepted by Assessing officer for any reason, the assessee would invite penalty under Section271(1)(c). That is clearly not the intendment of the Legislature. 10. In the instant case before us, the enhancement of ₹ 50,00,000/- was made by CIT(A). the penalty proceedings should be commenced in the course of, and before the completion of the proceedings in which the income tax authority is satisfied about the default which attracts the penalty. Here in this case the CIT(A) was satisfied and completed the proceedings by making enhancement. However, ,he has not initiated any penalty proceeding. 11. In view of the above discussion, we do not find any merit in the pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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