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2016 (2) TMI 378 - AT - Income TaxPenalty under S.271(1)(c) - deduction under S.10A - CIT(A) allowed the appeal of the assessee for statistical purposes - Held that:- Contention of the assessee right from the beginning against the penalties proposed is that the said claims under S.10A were made on account of typographical errors and incorrect advice of the Chartered Accountant. Even though the CIT(A) observed that this passing on of the blame on to the Chartered Accountant was only to get away from the penalty, the CIT(A), taking into account the appellate orders passed by her in the quantum proceedings emanating from the orders of the Assessing Officer under S.154, whereby she has directed the allowance of deductions under S.35(2AB) and S.35(1), held that if these deductions were allowed, the assessed income would become nil, and hence the quantum of penalty imposable for the years under appeal would also become ‘nil’. Since the quantum of penalty imposable thus would be ‘nil’ in each of these years, the CIT(A) allowed the appeals of the assessee for statistical purposes. No material has been brought on record to controvert the finding of the CIT(A) that if the deductions under S.35(2AB) and S.35(1) are allowed for the years under appeal, the assessable income would be nil, and consequently, the penalty imposable would also be ‘nil’. When there is no variation to the total income determined, machinery provisions for calculation of ‘tax sought to be evaded’ would fail. In that view of the matter, we find no infirmity in the impugned orders of the CIT(A). We accordingly uphold the same - Decided against revenue
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