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2020 (2) TMI 935 - ITAT DELHIPenalty u/s 271(1)(c) - inadmissible claim of deductions u/s 80IB and 80G - HELD THAT:- It is a valid satisfaction because it is categorically mentioned in the satisfaction note that, “assessee company has furnished inaccurate particulars with a view to evade the tax and the reason described above may be treated as satisfaction note for initiating the penalty proceedings u/s 271(1)(c) for the above two additions made”. Then, on the basis of aforesaid satisfaction recorded by the AO, notice was issued to the assessee company u/s 274 r/w section 271(1)(c) of the Act which has never been challenged by the assessee company. All these facts go to prove that penalty proceedings in this case are initiated on the basis of valid satisfaction and the decisions relied upon by the assessee are not applicable to the facts and circumstances of the case. This is a case clearly distinguishable from the case of Reliance Petro Products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] because in this case claiming of inadmissible deductions u/s 80IB and 80G is not a wrong claim rather a deliberate and conscious scheme to evade the tax by furnishing inaccurate particulars of income, if not caught in scrutiny.- thus penalty is not sustainable in the eyes of law Assessee in this case has never revised its return during the period prescribed u/s 139(1) rather withdrew the claim during assessment proceedings when confronted by the AO. So, by no stretch of imagination, the claim made by the assessee for deduction u/s 80IB and 80G can be considered as inadvertent claim rather it is deliberate and conscious claim made to evade the taxes. Moreover, it is nowhere the case of the assessee company that the claim of deduction has been made on the basis of wrong audited reports or its audited report has been subsequently corrected by its auditors. Had there been any inadvertent mistake on the part of the assessee company to claim such deductions, assessee company would have filed revised return within the prescribed period, but no such revised return has been filed which leads to the conclusion that it was a deliberate and conscious attempt to evade tax. At no point of time, either before assessment proceedings or during appellate proceedings assessee has come forward with claim that it has acted bonafide while making the inadmissible claim u/s 80IB and 80G. When it is proved on record that the claim of deductions made by the assessee company u/s 80IB an d80G is not only incorrect but a malafide under Explanation 1 to section 271(1)(c) is attracted to confirm the penalty levied on the assessee company. - Decided against assessee. Penalty initiated on the basis of addition u/s 40A(ia) for non-deduction of TDS - Contention of the assessee in this regard is sustainable because qua addition assessee company has made full disclosure of all the facts as to making payment on which TDS was not deducted. So, the assessee had no occasion to furnish inaccurate particulars to conceal its income as the only dispute was qua deduction or non-deduction of tax for the payment made on account of legal and professional expenses. - Decided in favour of assessee.
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