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2016 (12) TMI 1006 - HC - Income TaxPenalty u/s 271(1)(c) - excess claim made under Section 80IA - non-allocation of Head Office (personnel expenses) to the eligible unit - Held that:- It is an admitted position before us that the issue of 10% of allocation to personnel expenses to the eligible unit for the Assessment Year 2000-01 was decided by the Tribunal much after filing of return of income for the subject assessment years. Thus, it cannot be said that non-allocation of eligible unit was deliberate to increase the profits of the eligible units. Before us, the respondent assessee in support of its submissions that non-allocation of Head Office (personnel expenses) to the eligible unit was on the basis of its understanding that only direct expenses i.e. having a direct nexus to the eligible unit is debitable. This view of the assessee in fact has found acceptance by the decision of this Court in Zandu Pharmaceutical Work Ltd. Vs. Commissioner of Income Tax, [2012 (9) TMI 620 - BOMBAY HIGH COURT ]. Therefore, the view / opinion of the respondent assessee in not allocating any personnel expenses of the Head Office to the eligible units is a possible view. Therefore, it cannot be said on these facts that there was any filing inaccurate particulars and / or concealment of income on the part of the respondent assessee warranting imposition of penalty.- Decided against revenue
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