Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 281 - AT - Income TaxPenalty u/s 271(1)(c) - assessee contented as no notice u/s 274 r.w.s. 271(1)(c) was issued along with assessment order - no prima-facie satisfaction recorded by AO - HELD THAT:- As no copy of such notice issued has been produced by the Revenue. We find that the Tribunal in the case of Shambhu Dayal [2015 (11) TMI 1776 - ITAT DELHI] relied on the decision of Madhushree Gupta Vs. Union of India [2009 (7) TMI 38 - DELHI HIGH COURT] as held absence of any prima-facie satisfaction recorded by the AO for initiation of penalty in the assessment order, the penalty levied by the AO is without any jurisdiction and void ab-initio, therefore, order of the learned Assessing Officer passed under 271(1)(c ) of Act is quashed and the ground of the assessee is allowed Penalty u/s 271(1)(c ) - addition of depreciation or additional appreciation - remaining two claims relate to disallowance of interest on capital work in progress and disallowance of research and development expenses - CIT(A) pointed out that regarding the depreciation the assessee has fully disclosed all the particulars of claim not only in the statement of income but in the audited balance sheet and 3CD reports also. In respect of the capital work-in-progress and research and development expenses also all details have been filed by the assessee in notes to account annexed to balance sheet - HELD THAT:- We concur with the observation of CIT(A) that merely rejection of the claim may not invite the assessee to penalty under section 271(1)(c) of the Act. The Ld. DR could not controvert the observation of the Ld. CIT(A). In our opinion, the finding of the Ld. CIT(A) on the issue in dispute is well reasoned and we do not find any infirmity in the same and accordingly, we uphold the same. Accordingly, the ground of the appeal is dismissed. - Decided in favour of assessee.
|