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2016 (11) TMI 454 - AT - Income TaxConfirmation of penalty u/s. 271(1)(c) - additions pertaining to sale of PCBs and closing stock in finished goods - Held that:- It is the action of AO in bringing into tax, sale recorded in next year as ‘sale’ of this year on the reason that goods were shown as ‘discharged’ in the RG1 Register. In fact, there is no concealment as such. It is only the question of year of taxability. With reference to three Shock Pulse Analysers valued at ₹ 3,10,802/- again it is the RG1 Register which is the basis for AO’s action and assessee’s contentions that this stock was part of work-in-progress has not been disproved. It may be that it does not have much tax effect in assessee’s case, therefore, assessee has not pursued the litigation, but as the facts indicate assessee’s contentions that the same value was shown in work-in-progress and the addition is a double addition have not been invalidated. Considering these, we are of the opinion that these two amounts certainly does not fall in the category of concealment of income and therefore, penalty cannot be levied on the above two amounts. - Decided in favour of assessee Disallowance of 80-IA - Held that:- Assessee has acquired the property earlier in 01-04-1992 and the EMC Electronik unit was set up in AY. 1992-93. It was submitted that it has complied with all the conditions of Section 80-IA. This being the third year of the claim, AO analysed that assessee purchased second hand machinery and disallowed the claim. It is to be noted that claim u/s 80-IA was allowed by the Ld.CIT(A) after due examination by him. On further appeal by Revenue, ITAT however, has not allowed the claim. This shows that it is mere rejection of a claim. Mere disallowance of a claim does not come within the purview of ‘concealment of income’. It can also do not form under the category of ‘furnishing of inaccurate particulars’. See COMMISSIONER OF INCOME-TAX Versus RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT] - Decided in favour of assessee
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