TMI Blog2013 (7) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... 80-IA on similar facts claim of appellant, even on merit (in quantum proceedings) is valid and sustainable. The assessee company was under a bonafide belief that it is eligible for deduction u/s 80-IA. Moreover, from the decisions cited above, it is clearly evident that the said issue is a highly debatable one. It is well settled law that no penalty u/s 271(1)(c) can be levied when the issue is a debatable one as decided in CIT vs. Reliance Petroproducts [2010 (3) TMI 80 - SUPREME COURT] - thus the orders passed by the Commissioner (Appeals) deleting the penalty levied under section 271(1)(c) confirmed - In favour of assessee. - ITA No. 325/Mum/2011 - - - Dated:- 30-4-2013 - Shri P. M. Jagtap And Shri Amit Shukla,JJ. For the Petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the year 2000-2001. The assessee has not fulfilled the conditions laid down in section 80IA(4) as it was merely executing contract work awarded by Mumbai JNPT Port Road Co. Ltd. as a contractor and is not a developer of infrastructure facilities. In coming to this conclusion, he relied upon the Special Bench decision of the Tribunal, Mumbai Bench in B.T. Patil Sons Construction. Thus, penalty was levied on such a disallowance of claim for deduction under section 80IA after detail discussion. The Commissioner (Appeals) has deleted the penalty after observing and holding as under:- "I have carefully examined the facts of the case, the reasons stated in the assessment orders for disallowing the claim made under section 80IA of the I.T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by the appellant. The detailed written submissions made in support of the grounds of appeal have further supported the grounds of appeal and the stand of the appellant that the claims of deduction made u/s 80 IA of the I T Act do not amount to concealment of income or furnishing of inaccurate particular s of income as intended under section 271(l)(c) of the I T Act. The decision of the Honorable Supreme Court CIT, Ahmedabad v/s Reliance Petroproducts Pvt. Ltd., (189) Taxman (322) is applicable to the facts of the case. As held by the Honorable Supreme Court, disallowance of certain claims of expenditure made in the returns of income, do not constitute concealment for purpose of levy of penalty. In the case of the appellant the claims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the submissions of the learned Counsel has been incorporated by the Tribunal in the following manner:- "At the outset, on merits, it needs mention that the appellant's claim of deduction u/s 80-IA of the Act has been rejected by Assessing Officer by relying solely on the decision of the Special Bench in the case of B.T. Patil and Sons. In this regard, we would like to submit that after the decision of the Special Bench the decision of the Bombay High Court in the case of ABVG Heavy industries Ltd. (322 ITR 323) has allowed the claim of deduction u/s 80-IA on similar facts. After the said judgment, the various Benches of the Hon'ble Tribunal have allowed the claim of deduction u/s 80-IA of the Act. For your Honours ready reference, a few ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The above decision of the Apex Court has considered the decision of Union of India vs. Dharmendra Textile Processors (306 ITR 227). In the present case, on interpretation of section 80-IA the assessee took a view that he is a developer and claimed deduction u/s 80-IA of the Act. From the above decision, it is settled law that if the appellant makes a claim under a bona-fide belief then it will not amount to furnishing inaccurate particulars. It needs specific mention that the appellant has taken a legal view and no particulars have been concealed by the appellant. Further, the claim of the appellant is allowable even on merits on the basis of a the above decisions. It can be concluded that the issue is a highly debatable issue and the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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