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2015 (10) TMI 1431 - ITAT MUMBAI

2015 (10) TMI 1431 - ITAT MUMBAI - TMI - Penalty u/s.271(1)(c) - variation in the claim of deduction u/s.10A - Held that:- In the quantum proceedings the AO has disallowed the claim on some income/expenditure which was partly allowed by the CIT(A). However, the CIT(A) has reduced the claim u/s.10A by allowing certain expenditure which were claimed by assessee against other unit. On the issue of imposition of penalty for wrong claim of expenditure, the Hon’ble Supreme Court in the case of Relianc .....

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e tax authority is satisfied about the default which attracts the penalty. Here in this case the CIT(A) was satisfied and completed the proceedings by making enhancement. However, he has not initiated any penalty proceeding. Hence no merit in the penalty levied with reference to variation in the amount of claim for deduction u/s.10A - Decided in favour of assessee. - ITA No.1287/Mum/2013 - Dated:- 10-6-2015 - SHRI R.C.SHARMA AND MS. SUSHMA CHOWLA, JJ For The Assessee : Shri Jitendra Singh For Th .....

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fluctuation for computing eligible income for deduction u/s.10A. In the appeal, the CIT(A) has reversed the order of AO and held that this income is eligible for claim of deduction u/s.10A. The Tribunal confirmed the order of the CIT(A) on this ground. However, the CIT(A) has enhanced the income by ₹ 50 lakhs on the plea that assessee has claimed expenditure of this unit against other unit not eligible for deduction u/s.10A, thereby profit of eligible unit was increased for claiming higher .....

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e AO levied penalty u/s.271(1)(c) of the Act and the same was confirmed by the CIT(A) on the plea that assessee has wrongly claimed expenditure of eligible unit against other unit. Against the order of CIT(A) assessee is in further appeal before us. 6. It was contended by the ld. AR that mainly penalty is imposed with reference to income of ₹ 50 lakhs enhanced by the AO by revising the claim of deduction u/s.10A. He contended that since the enhancement was done by CIT(A), therefore, he sho .....

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t. 8. On the other hand, the contention of ld. DR was that assessee has wrongly claimed expenditure of eligible unit against non-eligible unit so as to claim higher deduction u/s.10A, accordingly the AO was justified in levying penalty for such a wrongful claim. 9. We have considered rival contentions, carefully gone through the orders of the authorities below and found that penalty has been levied with reference to variation in the claim of deduction u/s.10A. In the quantum proceedings the AO h .....

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