Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1431 - AT - Income TaxPenalty u/s.271(1)(c) - variation in the claim of deduction u/s.10A - Held that:- In the quantum proceedings the AO has disallowed the claim on some income/expenditure which was partly allowed by the CIT(A). However, the CIT(A) has reduced the claim u/s.10A by allowing certain expenditure which were claimed by assessee against other unit. On the issue of imposition of penalty for wrong claim of expenditure, the Hon’ble Supreme Court in the case of Reliance Petroproducts Ltd. (2010 (3) TMI 80 - SUPREME COURT) held that merely because the assessee had claimed the expenditure, where claim was not accepted or was not acceptable to the revenue, that by itself would not, in our opinion attract the penalty under Section 271(1)(c) In the instant case before us, the enhancement of ₹ 50,00,000/- was made by CIT(A). the penalty proceedings should be commenced in the course of, and before the completion of the proceedings in which the income tax authority is satisfied about the default which attracts the penalty. Here in this case the CIT(A) was satisfied and completed the proceedings by making enhancement. However, he has not initiated any penalty proceeding. Hence no merit in the penalty levied with reference to variation in the amount of claim for deduction u/s.10A - Decided in favour of assessee.
|