Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 145 - AT - Income TaxPenalty u/s 271(l)(c) - substantial expansion - claim of 100% deduction u/s 80-IC based on substantial expansion done by it during AY 2011-12 - act of concealment of income or furnishing inaccurate particulars of income - HELD THAT:- Since the quantum additions, on the basis of which the impugned penalty was levied, already stood deleted by the Hon'ble Supreme Court in Aarham Subtonics’ [2019 (2) TMI 1285 - SUPREME COURT ]the very basis on which the penalty was levied had ceased to exist. In view of this, the impugned penalty levied by the Assessing Officer is not sustainable in the eyes of law, the same is accordingly ordered to the deleted. So far as the findings of the Ld. CIT(A) that the Assessing Officer has made a observation that the assessee has not proved that any substantial expansion has been carried out, in our view, the said observation of the Ld. CIT(A) is misplaced. We have gone through the order of the Assessing Officer in quantum proceedings as well as the order of the Assessing Officer in penalty proceedings and find that the Assessing Officer has made a general observation by picking up certain lines as such from the order of the Tribunal in the case of ‘M/s Hycron Electronics, Baddi, Solan vs ITO’ [2015 (6) TMI 725 - ITAT CHANDIGARH] and no separate observation has been made by the Assessing Officer in the case of the assessee that no substantial expansion has been carried out. In view of this, the order of the CIT(A) is not sustainable in the eyes of law and the same is hereby set aside. The penalty levied by the Assessing Officer is accordingly ordered to be deleted. Denial of deduction @ 100% in the assessment year under consideration which is the fifth year of claiming deduction - (A.Y. 2015-16) - HELD THAT:- As laid down by the Hon'ble Supreme Court in the case of ‘Pr. CIT, Shimla vs M/s Aarham Subtonics’ [2019 (2) TMI 1285 - SUPREME COURT] the total deduction period u/s 80IC of the Act will not exceed 10 years from the initial year of setting up / commencement of the unit. To be made more clearer, since the assessment year 2015-16 under consideration is the 10th year of claiming deduction u/s 80IC of the Act, thus, the assessee will not be entitled to claim deduction u/s 80IC of the Act for any subsequent year.
|