TMI Blog2000 (10) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 271(1)(c) of the Income-tax Act, 1961. The assessee claimed a sum of Rs. 3,36,165 as deduction under section 33A by way of development allowance for an area of 46.33 hectares under tea plantation. This worked out to Rs. 14,511 per hectare. As per the provisions of section 33A(1), 50 per cent. of the actual cost of plantation is to be allowed as deduction where tea bushes have been pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he light of the reserve created by the assessee at Rs. 2,52,000. In the assessment order, the Assessing Officer observed since the assessee has furnished inaccurate particulars of its income by claiming the capital expenditure as fully allowable as revenue expenditure the penalty proceedings under section 271(1)(c) are initiated. After issuing the show-cause notice, a penalty of Rs. two lakhs wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the falsity of the explanation given by the assessee, there was cogent material or evid ence from which it could be inferred that the assessee had concealed the particulars of its income or deliberately furnished inaccurate particulars of income. The Revenue is in appeal. We have heard the parties and considered their rival submissions. After going through the order of the Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er hectare for which a maximum limit is prescribed under section 33A(7) of the Act. It is true that a maximum limit is prescribed for determining the actual cost of plantation, but that does not mean that the assessee had incurred that much expenditure and debited the same under the other heads of the expenditure in the profit and loss account. There is no basis for such an assumption. No particul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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