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2016 (3) TMI 80 - AT - Income TaxPenalty u/s.271(1)(c) - disallowances on difference of calculation of 80IB deduction - addition u/s.69C on account of expenditure and interest from bank - Held that:- On the issue of deprecation of Jammu unit due to mistake of the assessee company at the time of filing of return deduction was not claimed and subsequently revised computation of income was filed in addition to revised computation of 80IB deduction. The assessee company explained the circumstances of deduction u/s.80IB to the Assessing Officer and Commissioner of Income Tax (Appeals) and filed rectification petition u/s.154 against the order of Sec.143(3) of the Act and also against the order of 271(1)(c) of the Act. Finally, the ld. Assessing Officer has considered rectification petition dated 21.04.2015 of the assessee and passed order dated 7.7.2015 allowing deprecation in respect of Jammu unit eligible for deduction u/s.80IB. The mistake committed by the assessee company was rectified in the year 2015 and there was a genuine reason for the assessee to file petitions as per the law and claimed relief. Further, the assessee has not furnished any inaccurate particulars on the issue of depreciation and we rely on the decision of Apex Court in the case of CIT vs. Reliance Petro Products Ltd [2010 (3) TMI 80 - SUPREME COURT ]. In respect of addition of unexplained expenditure of ₹ 3,29,664/- the assessee has not reconciled the payments of Bank account with books of accounts maintained though the Department collected information based on AIR data. Even before us, the assessee has not supported his case with Bank statements of Credit Card expenses. Further, unaccounted receipts of ₹ 11,950/- pertaining to interest on bank deposits, which the assessee has omitted to include in the books of accounts for taxation purpose. In respect of these two additions the ld. Authorised Representative submitted that to buy peace with the Department has not filed appeal before the Commissioner of Income Tax (Appeals). However, no bonafide explanation from the assessee side for making inaccurate particulars to the Department. Considering the facts and circumstances of penalty, we direct the Assessing Officer to recompute penalty in respect of sustained addition of unexplained expenditure ₹ 3,29,664/-and unclaimed receipts of ₹ 11,950/- only - Decided partly in favour of assessee
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