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TMI Blog2016 (8) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... d claimed the deduction on these two items. Thereafter, the Tribunal observed that the bona fide explanation offered by the assessee was negatived by the Assessing Officer and on that basis a return cannot be said to be false unless there is an element of deliberateness in it. The Tribunal, therefore, reversed the order of the Commissioner of Income-tax (Appeals) and cancelled the penalty. We are in complete agreement with the view taken by the Tribunal. The Tribunal has rightly reversed the order of the Commissioner of Income-tax (Appeals) and cancelled the penalty. - Decided in favour of assessee - TAX APPEAL NO. 2614 of 2009 - - - Dated:- 4-8-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR KM PARIKH, SENI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal reversed the order of the Commissioner (Appeals) and cancelled the penalty. 4. Learned counsel for the revenue Mr. Parikh has contended that this is a gross case where penalty order passed by the Assessing Officer which has been confirmed by the Commissioner of Income-tax (Appeals) has been cancelled by the Tribunal. Therefore, the Tribunal has committed serious error in cancelling the penalty order. He has further taken us to the order of the Commissioner of Income-tax (Appeals), particularly, paragraph Nos. 6 to 6.3 giving reasons for confirming the penalty, which are reproduced hereinbelow: 6. I have carefully gone through the rival submissions and I am of the view that the appellant company has not filed its return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I am convinced that it is a clear case of tax evasion and concealment of income by the appellant company. Therefore, penalty under section 271(1)(c) of the I.T. Act imposed by the assessing officer on this issue is confirmed. 6.2 Coming to the second issue regarding disallowance of R D expenses, I find that Shri A.M. Saiyed, production supervisor in his statement has clearly admitted that no research was carried out by the company and the appellant company could not furnish any details of any expenditure incurred on the R D activity. Clearly such expenses were bogus in nature. Therefore, the Hon. ITAT has confirmed the quantum addition on this issue. Considering the facts and circumstances of the case, I am of the view that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one through the order of the Tribunal. While considering the case, the Tribunal noted that the claims have been made by the assessee on the advice of the Chartered Accountant handling the work of the assessee company and that the claim is technically allowable as regards to scientific research and R D expenses looking to the work of new product development undertaken by the assessee. All facts, including bills list of parties from whom these capital assets were purchased, duly audited by the Chartered Accountant, were filed in the assessment proceedings and as per the opinion of the Chartered Accountant looking after the case, the assessee company had claimed the deduction on these two items. Thereafter, the Tribunal observed that the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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