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TMI Blog2016 (6) TMI 845X X X X Extracts X X X X X X X X Extracts X X X X ..... following substantial questions of law:- i) Whether the Hon'ble ITAT is right in law in upholding the decision of the CIT(A) deleting the penalty levied by relying upon the decision of Reliance Petro Products, when the issue was clearly covered by the decision of the Hon'ble Delhi High Court in the case of CIT vs. Zoom Communication (P) Ltd. (2010) 327 ITR 510? ii) Whether the Hon'ble ITAT is right in law in deleting the penalty without considering that non furnishing of documentary evidences regarding any expenditure claimed tantamounts to furnishing of inaccurate particulars of income? iii) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was right in law in deleting the penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditions mentioned at Sr. No. (ii) to (v) and deleted the addition mentioned at Sr. No.(i) above. Against the order dated 1.3.2011, the assessee filed an appeal challenging the additions at Sr. No. (ii) to (v) confirmed by the CIT(A) whereas the revenue challenged the addition at Sr. No. (i) deleted by the CIT(A) before the Tribunal. The Tribunal vide order dated 28.1.2015 (Annexure A-2) set aside the order of the CIT(A) and directed the Assessing Officer to make disallowance on pro-rata basis. However, the appeal of the revenue was allowed for statistical purposes. The Assessing Officer vide order dated 28.3.2013 (Annexure A-3) imposed penalty amounting to Rs. 1,10,78,245/- under Section 271(1)(c) of the Act on the issues confirmed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act, while deleting the penalty, the CIT(A) had noticed as under:- "3.3. I have considered the facts of the issue. The concealment penalty has been levied on account of proportionate disallowance of interest on capital work in progress. The disallowance was made due to non furnishing of details of utilization of various secured and unsecured loans and cash flow statement and also that the manner in which the interest was capitalized had not been provided. The disallowance has been made by the Assessing Officer on proportionate/estimated basis and for non furnishing of certain details. The appellant had not concealed any particulars of its income or had not furnished inaccurate particulars and so the concealment penalty on such disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I am entirely in agreement with the explanation of the appellant, since disallowance @ 1% of total investment in building was made on estimated basis to restrict the expenses on current repairs of the building and this was done as per the directions of Hon'ble ITAT in A.Y. 2004-05. The disallowance is purely an estimate and so penalty for concealment cannot be levied in view of the judgment of Hon'ble Punjab and Haryana High Court in the case of Harigopal Singh (258 ITR 85). The penalty for concealment levied on this issue is accordingly cancelled. Ground of appeal No.4 is allowed." 9. Examining the levy of penalty on the addition made on account of deferred tax amounting to Rs. 2,21,86,000/- computed on the book profits under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reed for disallowance of proportionate interest for which the assessee cannot be held liable for either concealing particulars of income or furnishing inaccurate particulars of income. Similarly, though the issue of disallowance of proportionate interest under Section 14A of the Act was not agitated before the Tribunal due to smallness of amount of Rs. 27,562/- but due to the factum that interpretation of this provision had not been settled finally, therefore, no penalty under Section 271(1)(c) of the Act was exigible. Equally the disallowance on account of repair and maintenance under Section 40(a)(ia) of the Act was made on estimate basis and finally the disallowance had been restricted by the Tribunal at Rs. 1 lac during quantum proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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