9911796707
TMI Blog2008 (4) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... hether on the facts and law the Hon'ble Income Tax Appellate Tribunal was legally justified to hold that the penalty u/s 271(1)(c) was not justified in view of the Explanation 4(a) to Section 271(1)(c) due to inaccurate particulars of income by wrongly claiming the deduction u/s 80P(2)(a)(iii) of I.T.Act, as it was engaged in manufacturing and not in marketing business.?" The respondent is a cooperative society. The return of income for the assessment year 1995-96 was filed on 31.10.1995 declaring 'NIL' income. A perusal of the computation of total income shows that the business income of Rs.6,32,07,617/- earned from the activity of manufacturing of sugar, molasses and other byproducts from sugarcane was claimed to be exempt u/s 80P(2)(a)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent to defraud the revenue or conceal the facts, and also that the respondent had paid the tax in advance as also on self assessment and further that the claim made by the respondent was a bonafide claim and that all the particulars relating to computation of income were disclosed. Feeling aggrieved against the said findings of the Income Tax Appellate Tribunal, Chandigarh, the revenue has filed the present appeal. Shri Sanjiv Bansal, Advocate for the revenue has vehemently argued that the Income Tax Appellate Tribunal, Chandigarh was not justified in ignoring the fact that the respondent had furnished inaccurate particulars of income by claiming deduction under Section 80P(2)(a)(iii) of the Act as the respondent was engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Marketing Society Ltd. 115 ITR 709 ( Ker.), M.R. Marketing & Processing Co.op. Society v. CIT 193 ITR 108 ( Ker. ) and CIT v. Karjan Co.op. Society Ltd. 129 ITR 821 ( Guj. ), on the basis of which society believed that it was entitled to deduction under Section 80P(2)(a)(iii) of the Act. Thus, the issue of entitlement to said deduction under these provisions was highly debatable. Moreover, undisputedly the society had paid advance tax as well as self assessment tax, not taking into account the deductions under Section 80P(2)(a)(iii) of the Act. The society had only made a claim of deductions in the return of income, which was not allowed by the Assessing Officer. It is, therefore, evident from the facts that the claim made by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
