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TMI Blog2019 (4) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... g to which penalty was levied was identical and, therefore, both the appeals were taken up together for hearing and are being disposed off by this common order. For the sake of convenience, we shall be dealing with the facts in ITA No.1084/Chd/2018 and the decision rendered therein will apply mutatis mutandis to other Appeal also. 3. Briefly stated, the penalty in the present case had been levied on account of the addition made to the income of the assessee by restricting its claim of deduction u/s 80IC to 25% of he eligible profits as against 100% claimed by it on account of substantial expansion carried by it. The addition made in the quantum proceedings had been upheld both by the CIT(A) and the I.T.A.T. and accordingly, penalty u/s 271 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following observation:- "7. Considering the above discussion, it is clear that assessee claimed deduction under section 80IC in assessment year under appeal in a bonafide manner and mere fact that claim of assessee has been disallowed, would not prove it to be a fit case of levy of penalty for filing inaccurate particulars in income. The issue of claim of deduction was debatable and bonafide. However, there was conflict for determination of provision of law. Merely making a claim of 100% deduction against 25% as per opinion of the Assessing Officer under section 80IC of the Act would not be at par with concealment of income or furnishing inaccurate particulars of income. The decisions relied upon by Ld. Counsel for the assessee suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "1. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in allowing appeal of the assessee without appreciating the facts of the case. 2. On the facts and in the circumstances of the case, the Ld, CIT(A) has erred in deleting the penalty of Rs. 32,84,676/- on the confirmed addition on accoun to restricting the benefit of deduction claimed by the assessee under section 80IC of the Income Tax Act, 1961 to 25% as against 100% deduction as the assessee had failed to discharge its liability to furnish its true and correct particulars of income while filing the return of income. 3. On the facts and in the circumstances of the case, the Ld, CIT(A) has erred in deleting the penalty of Rs. 32,84,676/- on the confirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be cancelled and that of the Assessing Officer may be restored. 7. The appellant craves leave to add or amend any grounds of appeal before the appeal is heard or is disposed off." 6. During the course of hearing before us at the outset itself, the Ld. counsel for assessee pointed out that the I.T.A.T. had deleted identical penalty levied in another case also in the case of ACIT Vs. M/s Quixotic Healthcare in ITA No.812/Chd/2018 dated 18.12.2018. Our attention was drawn to the findings of the I.T.A.T. at para 6 wherein it was pointed out that the I.T.A.T. had held that the issue of allowability of deduction u/s 80IC on substantial expansion had a long history of oscillations, being allowed and disallowed by the Revenue at different times ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is rightly eligible for claim of exemption and hence no penalty can be levied under section 271(l)(c). Keeping in view the totality of the facts and circumstances and the provisions of the Act we hereby decline to interfere with the order of the Ld. CIJ(A) in deleting the penalty levied by the Assessing Officer under section 271 (l)(c) of the Income Tax Act 1961." 7. The Ld. DR, on the other hand, fairly conceded that the issue was covered by the aforesaid two decisions of the I.T.A.T. though he heavily relied upon the order of the A.O. 8. We have heard the rival contentions. Admittedly, identical issue of levy of penalty on account of restriction of claim of deduction u/s 80IC to 25% of the eligible profitis as against 100% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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