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TMI Blog2016 (9) TMI 1367X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment order made a mistake in overlooking the contents of the tax audit report and the tax audit report suggest that there is no question of the assessee concealing its income. There is also no question of the assessee furnishing any inaccurate particulars. All that happened in the present case is that through a bonafide and inadvertent error, the C.A. failed to note the ceiling in respect of amount credited by the assessee to foreign project reserve account while computing the deduction under section 80HHB of the Act, that by itself would not, in our considered opinion, attract the penalty under section 271(1)(c) of the Act. Our above view has been duly fortified by the Hon’ble Supreme Court in the case of Price Waterhouse Coope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 148 of the Act on 23.03.2009 and the reassessment was completed at the total income of ₹.9,99,04,240/- on 24.12.2009 . Penalty was imposed under section 271(1)(c) of the Act vide the impugned order dated 28.06.2010 amounting to ₹.29,43,150/-. The penalty was levied in respect of restriction of claim of deduction under section 80HHB of the Act. 3. Against the penalty order, the assessee carried the matter in appeal before the ld. CIT(A) and by relying on various case law, filed a detailed written submissions dated 19.02.2016, wherein the assessee has submitted as under: 1.1 Appellant is an engineering multinational company engaged in the business of manufacture, supply and supervision of erection commissioni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CA certificate in Form 10CCAH from a Chartered Accountant to certify the computation of deduction u/s 80HHB as required u/s 80HHB(3)(ia). A copy of the said certificate is attached as Annexure 2. 1.8 The Appellant submits that the Chartered Accountant while computing the amount to be transferred to Foreign Projects Reserve Account under clause (ii) to sub-section (3) of section 80HHB erroneously applied the rate of 50% on the deduction u/s 80HHB instead of applying a rate of 30% on the profits. Consequently, the amount transferred to Foreign Projects Reserve Account was lower by ₹ 82,44,120 although the Appellant could have transferred a higher amount to the Reserve account as may be evident from the profit and loss account for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant (who was different from the CA who issued the certificate in earlier years) while issuing the certificate u/s 80HHB and as such the AO has not examined the aforesaid facts in the right perspective while proceeding to levy penalty u/s 271(1)( c) of the Act. 3.1. After considering the above submissions of the assessee and also by considering various judicial pronouncements, the ld. CIT(A) deleted the penalty levied under section 271(1)(c) of the Act. 4. On being aggrieved, the Revenue is in appeal before the Tribunal and by relying on the grounds raised in the appeal, the ld. DR has submitted that since the assessee has furnished inaccurate particulars, the deletion of levy of penalty is unwarranted and pleaded that the order of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on various case law by the Assessing Officer. In the first appellate order, the ld. CIT(A) has given a concurrent findings that the Assessing Officer has not discharged his onus. In the penalty order, the Assessing Officer has not brought any material on record as to what constitutes inaccurate particulars of income in the assessee s case and how he has arrived at the satisfaction that the same constitute furnishing of inaccurate particulars within the meaning of section 271(1)(c) of the Act. In this case, the assessee has furnished all the details of expenditure as well as income in its return for assessment. There was no finding of the assessing authority that any of the details supplied by the assessee in its return were found to be in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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