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TMI Blog2015 (11) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... )(c) of the Income-tax Act, 1961 has been upheld and penalty has been confirmed. 2. The sole ground raised by the assessee in this appeal reads as under : "1. That the hon'ble Commissioner of Income-tax (Appeals) has erred on facts and in law in confirming the order of the Assessing Officer of levying penalty of Rs. 4,69,125 under section 271(1)(c) of the Income-tax Act." 3. Briefly stated the facts giving rise to this appeal as recorded by the Commissioner of Income-tax (Appeals) are that the assessee is engaged in the business of manufacturing and trading of electrical home appliances. Since the business is being carried on in the backward State of Himachal Pradesh in Baddi, District Solan, the assessee is claiming deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Explanation 1 thereto. 5. Being aggrieved by the above penalty order, the assessee carried the matter to the first appellate authority, i.e., Commissioner of Income-tax (Appeals) but remained empty handed as the Commissioner of Income-tax (Appeals) also dismissed the appeal of the assessee upholding and confirming the penalty order. Now the assessee is before this Tribunal in this second appeal before the sole ground as reproduced hereinabove. 6. We have heard arguments of both sides and carefully perused the relevant material placed on record. Learned counsel for the assessee submitted that as per the decision of the hon'ble High Court of Madras in the case of Fenner (India) Ltd. v. CIT (No. 2) [2000] 241 ITR 803 (Mad), the profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duce the scrap bills in support of his claim and concluded that the assessee had routed his income from undisclosed sources in the garb of scrap sale and has claimed the deduction under section 80-IC of the Act on that amount which is not leviable. Learned counsel pointed out that these observations of the Assessing Officer are factually incorrect as the assessee was not afforded due opportunity of hearing during the assessment proceedings and therefore during first appellate proceedings before the Commissioner of Income-tax (Appeals), the assessee submitted an application under rule 46A of the Income-tax Rules, 1962 with additional evidence wherein the assessee submitted written submissions along with ledger account of miscellaneous income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and has concealed true particulars of her income and, therefore, under Explanation 1 to section 271(1)(c) of the Act, the penalty was rightly imposed by the Assessing Officer and the Commissioner of Income-tax (Appeals) was quite justified in confirming the same. 9. On a careful consideration of the above submissions, at the very outset, we note that although the assessee could not produce bills and vouchers pertaining to the sale of scrap but the same details was submitted by the assessee before the Commissioner of Income-tax (Appeals) which was also confronted to the Assessing Officer and the Assessing Officer in his remand report dated October 23, 2012 objected to the admission of additional evidence but could not bring any adverse mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessment year 2007-08, we note that the Assessing Officer has not disputed the amount of Rs. 5 lakhs which was earned by the assessee from sale of scrap and although the Assessing Officer has denied deduction under section 80-IC of the Act to the assessee for this amount for the assessment year 2007-08 for the year under consideration, it cannot be said that the assessee furnished either inaccurate particulars of its income or has concealed particulars of its true income. At this juncture, we respectfully take cognizance of the decision of the hon'ble apex court in the case of CIT v. Reliance Petroproducts P. Ltd. [2010] 322 ITR 158 (SC) where their Lordships held that merely because the claim of the assessee was not accepted or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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