TMI Blog2011 (12) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 15.04.2011 passed by the ld. CIT-I Ludhiana u/s 263 of the Income-tax Act,1961 (in short 'the Act'). 2. In this appeal, the assessee has raised the following Grounds of Appeal: 1. That the order passed u/s 263 of the Income tax Act, 1961 by the ld. CIT-I Ludhiana is against law and facts on the file in as much as the penalty order passed by the ld. AO can neither be said to be erroneous nor prejudicial to the interest of revenue. 2. That the issue with respect to the leviability of penalty u/s 271(1)(c) on the amount of sales tax subsidy had merged with the order of ld. CIT(A) who had adjudicated the issue vide order dated 10.12.2010. 3. In the course of present appellate proceedings against the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 517/- DURING THE YEAR UNDER CONSIDERATION. IN VIEW OF THE DECISION OF PB. AND HARYANA High Court IN THE CASE OF ASSESSEE COMPANY THE SAME HAVE BEEN TRATED AS REVENUE RECEIPT, HOWEVER THE COMPANY HAS FILED AN APPEAL BEFORE THE Hon'ble SUPREME COURT OF INDIA TO CONSIDER THE SAME AS CAPITAL RECEIPT. THUS THE SALES TAX SUBSIDY MAY PLEASE BE TREATED AS CAPITAL RECEIPT AT THE TIME OF FRAMING OF ASSESSMENT. Refer to point No.22(b) of form 3CD of tax audit report dated From the aforesaid discussion and also discussion made in the assessment order it is seen that the assessee company itself has shown the aforesaid sales tax subsidy as revenue receipt and claim to treat the sales tax subsidy as capital receipt was made only by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legal position on this issue is clear, the assessee has resorted to furnishing inaccurate particulars of income. I, therefore, hold it a fit case for imposition of penalty u/s 271(1)(c). 6. However, it is evident that the AO omitted to compute the said penalty in the concluding part of the said order which led to invocation of the provisions of Section 263 by the CIT. Having regard to the above legal and factual discussion, we are of the considered opinion that the issues which were considered and decided by the CIT(A), cannot be made subject to the provisions of Section 263 of the Act by the CIT, as is evident from the reproduction of sub-clause c of Explanation to Section 263(1) of the Act: (C) Where any order referred t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
