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2016 (4) TMI 1056 - ITAT CHENNAI

2016 (4) TMI 1056 - ITAT CHENNAI - TMI - Levy of penalty u/s.271(1)(c) - Held that:- The assessee has wrongly computed the deduction u/s.80-IA of the Act by showing the wrong depreciation. Had the Assessing Officer not verified it, it would have gone out of the taxation. Being so, in the present case in hand also there is furnishing of inaccurate particulars of income.Accordingly, we are inclined to confirm the levy of u/s.271(1)(c) of the Act. - Decided against assessee. - I.T.A.No.2193/Mds. /2 .....

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y u/s.271(1)(c) of the Act. 2.2. There was a delay of 58 days in filing the appeal. The assessee filed a petition for condonation of delay stating that the person, who is handling appeal papers, i.e. Mr.P.Viswanathan, Manager, Accounts of the Company, suffered from leptospirosis fever and he was not available to take up the case with the assessee s counsel and that cause for delay. To this effect, the assessee also filed the medical certificate dated 16.08.2014 from Kerala Ayurvedic Treatment Ce .....

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ssues being disallowances u/s.14A, u/s.40(a)(ia) and allowed u/s.80IB of the Act only ₹ 15,37,473/- against the claim of assessee ₹ 95,33,528/-. However, since the taxable income u/s.115JB was more the assessee was taxed as per 115JB of the Act. The excess claim of s.80IB was due to non-adoption of depreciation as per I.T Rules. The depreciation claimed as per books (Companies Act) was ₹ 70,64,166 whereas as per IT Rules it is ₹ 3,55,77,075/-. By claiming lesser depreciat .....

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ich read as under: 271. (1) If the Assessing Officer or the Commissioner (Appeals) or the Commissioner in the course of any proceedings under this Act, is satisfied that any person - (a) (b) (c) has concealed the particulars of his income or furnished inaccurate particulars of such income or Explanation 1.-Where in respect of any facts material to the computation of the total income of any person under this Act,- (A) such person fails to offer an explanation or offers an explanation which is fou .....

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-section, be deemed to represent the income in respect of which particulars have been concealed. From the above provisions and the Explanation, it is interesting to note that the legislators have not limited the offence for any specific year or a specific method of computation like normal provisions or 11 5JB provisions. The act of concealment of particulars of income or furnishing of inaccurate particulars of such income will itself attract provisions of s.271(1)(c). It is also clear from the E .....

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not alter the tax liability of the appellant who has offered the income for taxation u/s 11 5JB, but it will definitely have an effect on the Reserves & Surpluses of the year and subsequent years. Further, the impact may also accentuate if the appellant offers the income for taxation in the subsequent years under normal computation instead of I I5JB. Therefore, CIT(A) was of the opinion, the glorified Reserves & Surpluses in the subsequent years which have arisen out of wrong claim of d .....

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er quantum of depreciation. The appellant is aware that claiming of more quantum of eligible depreciation will reduce their eligible deduction u/s 8OlB, therefore, it has claimed only a lesser quantum of depreciation per Companies Act. This shows willful attempt to claim more deduction. The appellant has furnished an explanation which it is not able to substantiate and fails to prove that such explanation is bonafide as per Explanation I to s.271(I)(c). The appellant s bald explanation, that cla .....

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)(c). Further, the emphasis on the particular action of submission of inaccurate particulars of income irrespective of the year in which such submission of inaccurate particulars have arisen will also subscribe to the above penalty provisions. Therefore, the penalty levied by the AO is upheld by the Ld.CIT(A). Against this the assessee is in appeal before us. 4. ld.A.R pleaded before us that in view of decision of Hon ble Delhi High Court in the case of CIT Vs. Nalwa Sons Investments Ltd., repor .....

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