TMI Blog2013 (12) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... n - In such case the conditions necessary for levy of penalty under Section 271 (1) (c) of the Act are not fulfilled - The Income Tax Authorities did not find that the assessee had either concealed the particulars of his income or furnished inaccurate particulars of such income, to attract the levy of penalty - Decided against Revenue. - Income Tax Appeal No. - 137 of 2009 - - - Dated:- 31-8-2012 - Hon'ble Sunil Ambwani And Hon'ble Aditya Nath Mittal,JJ. For the Petitioner : A. N. Mahajan (Inc. Tax) ORDER 1. We have heard Shri Bharat Ji Agarwal, Senior Advocate, assisted by Shri Dhananjay Awasthi for the Income Tax Department. 2. The assessee is engaged in trading of milk milk products which is exported. He claimed deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s 80 HHC in his return of income filed on 01.11.04 ignoring the decision of Hon'ble Supreme Court in IPCA Lab. vs. DCIT (266 ITR 521) delivered on 11.03.04.? (3) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in observing that multiple view were possible with regard to the deduction u/s 80 HHC even after the decision of the Supreme Court in IPCA vs. DCIT (266 ITR 521)? 4. The CIT (A) held that on merits the penalty is not exigible, on the ground that the deduction u/s 80HHC was a legally debatable issue. After the judgment of Apex Court in IPCA Laboratories (supra) the entire provisions of Income Tax Act under Section 80HHC were modified, which were directed to be followed in ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of the assessee within the purview of levying penalty u/s 271 (1) (c) hence we are of the opinion that the well reasoned and well discussed order of CIT (A) does not call for any interference from our side and accordingly the same is upheld and the ground of appeal taken by the Revenue is rejected. 7. In the result, the appeal filed by the Revenue is dismissed." 6. On a plain reading of Section 271 (1) (c) of the Act, the penalty is attracted if the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income. 7. The words 'such income' were added to Section 271 (1) (c) by Finance Act, 2005 w.e.f. 1.4.2006. In the present case, we are concerned with the assessment year 2004-05. The AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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