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TMI Blog2016 (3) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... y of penalty u/s.271(1)(c) of the Act on the disallowances made by the Assessing Officer on difference of calculation of 80IB deduction, addition u/s.69C on account of expenditure and interest from bank. 3. The Brief facts of the are case that the assessee company is engaged in the business of manufacturer of insecticides and filed return on income within due date on 24.08.2009 disclosing Total income of Rs. 12,12,95,604/- subsequently, case was selected for scrutiny and notices were issued. In the assessment proceedings, the ld. Authorised Representative submitted information and filed brief on deprecation claimed in respect of eligible unit at Jammu with revised deduction u/s.80IB of the Act and explained that at the time of filing of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny has incurred Rs. 26,79,737/- towards business expenditure and unreconciled aggregate amount being Rs. 3,29,664/-. The interest income from bank as per the 26AS was taxed by the Assessing Officer as the company is following mercantile Accounting system. But the Assessing Officer completed the penalty proceedings with findings that assessee has deliberately concealed the real income and wrongly claimed deprecation and not reconciled expenditure and levied penalty of Rs. 29,82,025/-. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). 4. In the appellate proceedings, the ld. Authorised Representative argued that there is no willful or wanton act of concealment of pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed before completion of assessment and co-operated in the proceedings and acceptance of addition does not lead to levy of penalty and it is not automatic. The assessee also filed paper book with details of 154 petitions and revised computation of income and calculation of 80IB deduction. The ld. Authorised Representative drew attention on the issue of 80IB calculation and mentioned that on the basis of return filed by the assessee, Assessing Officer has not allowed deprecation in respect of Jammu 80IB unit. After considering the submissions and the petitions filed by the assessee the Assessing Officer passed Sec. 154 order and allowed deduction. Further, ld.Authorised Representative drew attention to page No. 3 of paper book contain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee to file petitions as per the law and claimed relief. Further, the assessee has not furnished any inaccurate particulars on the issue of depreciation and we rely on the decision of Apex Court in the case of CIT vs. Reliance Petro Products Ltd 322 ITR 158. 8. In respect of addition of unexplained expenditure of Rs. 3,29,664/- the assessee has not reconciled the payments of Bank account with books of accounts maintained though the Department collected information based on AIR data. Even before us, the assessee has not supported his case with Bank statements of Credit Card expenses. Further, unaccounted receipts of Rs. 11,950/- pertaining to interest on bank deposits, which the assessee has omitted to include in the books of accounts for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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