TMI Blog2016 (3) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... tition u/s.154 against the order of Sec.143(3) of the Act and also against the order of 271(1)(c) of the Act. Finally, the ld. Assessing Officer has considered rectification petition dated 21.04.2015 of the assessee and passed order dated 7.7.2015 allowing deprecation in respect of Jammu unit eligible for deduction u/s.80IB. The mistake committed by the assessee company was rectified in the year 2015 and there was a genuine reason for the assessee 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 [2010 (3) TMI 80 - SUPREME COURT ]. In respect of add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.271(1)(c) r.w.s. 274 and 250 of the Income Tax Act, 1961. 2. The assessee company has raised grounds on levy 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 ₹ 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 respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Further, In respect of payment to American Express Banking Corp, the ld. Authorised Representative submitted that the assessee company has incurred ₹ 26,79,737/- towards business expenditure and unreconciled aggregate amount being ₹ 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 ₹ 29,82,025/-. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in order to buy peace the assessee has accepted the addition of unexplained expenditure and unaccounted receipts. Further, all the material facts were 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 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t eligible for deduction u/s.80IB. The mistake committed by the assessee company was rectified in the year 2015 and there was a genuine reason for the assessee 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 ₹ 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 expense ..... X X X X Extracts X X X X X X X X Extracts X X X X
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