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TMI Blog2013 (6) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 17,40,483/- imposed u/s271(1) (c) of the Income Tax Act with appreciating the fact of the case. 2. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing." Grounds of Appeal (A.Y-2006-07) 1. 1. On the facts and circumstances of the case and in law, the Ld. CIT (A) has erred in deleting the penalty of Rs. 36,28,392/- imposed u/s 271(1) (c) of the Income Tax Act with appreciating the fact of the case. 2. The appellant craves leave to add, alter or amend any ground of appeal raised above at the time of hearing." The main grievance of the Revenue is regarding deletion of penalty u/s 271 (1) (c) by CIT (A) 2. The brief facts of the case are that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by AO by holding as under: "I have considered the submission of the appellant, observation of the AO and decision of ITAT Delhi on this issue. It is seen that appellant had declared book profit during the year at Rs. 161,86,629/- u/s 115JB of the IT Act. While doing so the appellant did not include provision for doubtful debts, doubtful advances and obsolescence stock of Rs. 2,21,96,504/- in the book profit determined and total book profit was determined at Rs. 3,83,83,133/-. This was done on the basis of amendment made by the Finance Act 2009, in section 115JB with retrospective effect from 1st April 2001. Prior to this amendment there were judgments of various High Court's and Supreme Court on this issue wherein it was held that in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for doubtful debts and advances in the book profit u/s115JB has been deleted. The relevant para of the decision is reproduced hereunder: "We have carefully considered the submission and perused the records. We find that similar addition was levied in the hands of the assessee for A. Yrs. 2006-07 the matter had traveled to the Hon'ble High Court and the Hon'ble High Court confirmed the deletion of penalty by observing as under: "CIT (A) and the Tribunal have deleted the said penalty observing that the position became clear when the retrospective amendment was made w. e. f. 01.04.2001 vide Finance (No.2) Act, 2009. In the present case, the assessee had filed the return on income on 29.11.2006, which was revised on 31.03.2008. These are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aced on the decision of ITAT Andhra Bench in the case of Dream Shelters (P.) Ltd. Vs Income Tax Officer reported in 29 taxmann. com 14. Regarding doubtful advances the Ld. DR submitted that evidence in respect of doubtful debts was not filed and CIT (A) has not made any investigation. Reliance in this respect was placed in the case of Rain Commodities Ltd. vs Deputy Commissioner of Income-tax reported in 131 TTJ 514(Hyd.) Reliance was also placed on the judgments in following cases:- (a) Technicarts (P.) Ltd. Vs ITO reported in 12 taxmann. com 1 (Mum.) (b) Sumer builders (P.) Ltd. Vs DCIT reported in 19 taxmann. com 43 (Mum.) (c) Growth Avenue Securities (P.) Ltd Vs DCIT reported in 126 ITD 179 (DEL) (d) Kanchenjunga Advertising P. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the Act. 8. We have heard the rival parties and have gone through the material placed on record. We find that the additions in the cases of assessee were confirmed due to retrospective amendment in the provisions of section 115JB and Ld. CIT (A) has very categorically made his findings and has deleted the penalties as per law. The reliance put by the Ld. DR on different case laws do not match with the facts and circumstances of present case for example the case law related to Dream Shelters (P.) Ltd. Vs Income Tax Officer reported in 29 taxmann. com 14. relates to agreed additions wherein, Hon'ble Tribunal had held that profit will be taken as per profit and loss account plus agreed additions, similarly the case law of DCIT Vs. PFI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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