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2016 (3) TMI 80 - ITAT CHENNAI

2016 (3) TMI 80 - ITAT CHENNAI - TMI - Penalty u/s.271(1)(c) - disallowances on difference of calculation of 80IB deduction - addition u/s.69C on account of expenditure and interest from bank - Held that:- On the issue of deprecation of Jammu unit due to mistake of the assessee company at the time of filing of return deduction was not claimed and subsequently revised computation of income was filed in addition to revised computation of 80IB deduction. The assessee company explained the circumsta .....

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ified 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 addition of unexplained expenditure of ₹ 3,29,664/- the assessee has not reconciled the payments of Bank account with bo .....

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d appeal before the Commissioner of Income Tax (Appeals). However, no bonafide explanation from the assessee side for making inaccurate particulars to the Department. Considering the facts and circumstances of penalty, we direct the Assessing Officer to recompute penalty in respect of sustained addition of unexplained expenditure ₹ 3,29,664/-and unclaimed receipts of ₹ 11,950/- only - Decided partly in favour of assessee - ITA No. 101/2014 - Dated:- 22-1-2016 - Chandra Poojari, AM An .....

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e 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. Aut .....

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₹ 86,44,827/- and also made an addition u/s.69C of the Act on basis of the AIR transactions with American Express Banking Corp. ₹ 3,29,664/- as unexplained expenditure. Further, the Assessing Officer based on the 26AS found that the assessee has not offered interest on bank deposit amounting to ₹ 11,950/- and taxed as unaccounted receipts. The Assessing Officer completed assessment by above additions and assessed total income at ₹ 12,66,60,264/- and raised demand. Subsequ .....

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143(3) of the Act on claim of exemption u/Se 80IB and proposed steps for rectify the mistake. 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 As .....

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assessee has voluntarily disclosed all material information before the Assessing Officer in the assessment proceedings and paid taxes. But on the issue of disallowance of depreciation, there is omission on the part of the company to disallow the deprecation under Companies Act and to claim depreciation as per Income Tax Rules. In order to buy peace with the Income Tax department assessee has accepted the additions in respect of unexplained expenditure and interest receipts. The assessee filed a .....

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an appeal before the Tribunal. 5. Before the Tribunal, the ld. Authorised Representative argued the grounds raised against penalty order and assessee company has voluntarily accepted the mistake which has crept in calculation of deprecation and also filed revised computation of income with Sec.80IB working. The ld.AR reiterated that in order to buy peace the assessee has accepted the addition of unexplained expenditure and unaccounted receipts. Further, all the material facts were disclosed bef .....

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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 containing the ledger accounts copies of American Express Banking Corp with details of payments and closing balance. The bank interest difference arised due to non receipt of TDS certificate before finalization of accounts and prayed for deletion of penalty. 6. .On the o .....

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s not claimed and subsequently revised computation of income was filed in addition to revised computation of 80IB deduction. The assessee company explained the circumstances of deduction u/s.80IB to the Assessing Officer and Commissioner of Income Tax (Appeals) and filed rectification petition 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 asses .....

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