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TMI Blog2005 (2) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... a return declaring therein income of ₹ 67,145. The assessee had shown total contract receipts at ₹ 58,57,339 and only 25 per cent of such receipts were shown from the construction work. The remaining 75 per cent receipts were shown from earth and labour work and income from such receipts was claimed as exempt under section 80-P (2)(a)( vi) of the Income-tax Act. On being asked to furnish the bifurcation of the total receipts, the assessee submitted that bifurcation is based on Circular dated 23/30-7-1990 issued by CIT, Amritsar. However, the Assessing Officer obtained information directly from the improvement. Trust, Amritsar and Punjab State Co-operative Society Marketing Federation, Chandigarh and Jalandhar, where it was conf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ependent enquiries, the assessee surrendered such income. He also observed that information was collected and confronted to the assessee much before and it is only then that assessee surrendered the income. He further observed that reliance on circular/letter of CIT(A) for the bifurcation was factually wrong as nowhere the CIT(A) had said that bifurcation should be made on such basis. Thus, he observed that the assessee had no option but to surrender such income. Thus, the learned CIT(A) held that the case was clearly covered by an Explanation 1 to the effect that the assessee offered an explanation which was found to be false by the Assessing Officer. The assessee is now aggrieved with the order of the CIT(A). Hence, this appeal before me. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sr.) of 2004] for assessment year 2001-02 which was heard by the Bench a few days before. 6. I have heard both the parties and given my thoughtful consideration to the rival submissions with reference to facts, evidence and material on record. In this case, it is a fact that the assessee had claimed deduction of income under section 80P(2)(a)( vi) in respect of 75 per cent of total receipts amounting to ₹ 43,92,997 and offered only income from 25 per cent of contract receipts ₹ 14,64,332. It is also a fact that when the assessee was asked to furnish bifurcation of the receipts from construction work, earth work and labour, the assessee did not furnish such information and merely relied on the CIT's circular referred to above. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 271(1)(c) stands established. As regards the judgement of the Hon'ble Punjab & Haryana High Court in the case of Suresh Kumar Bansal ( supra) relied upon by the assessee, the same is distinguishable on facts. In that case, income was determined purely on estimate basis and there was no finding recorded in the assessment order about the concealment of income. Thus, in the light of these facts, it was held that the Tribunal was justified in deleting the penalty. But in the present case, there is a clear finding recorded by the Assessing Officer in the order about furnishing of inaccurate particulars of income which have been upheld by the ld. CIT(A). The assessee has not been able to justify its action in making a false claim under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r deduction under section 80P(2)(a)( vi) have been made in the return. While doing so, the Assessing Officer shall allow deduction under section 80P(2) as allowed in the assessment order and penalty shall be computed only in regard to the remaining amount. While doing so, the Assessing Officer shall allow a reasonable opportunity to the assessee. I order accordingly. This ground of appeal is treated as partly allowed. The same view was also taken in the case of Star Co-operative Society (supra) and the decision in that case equally applies to the facts of the present case. 6.2 However, before parting, I would like to mention that the decision of the ITAT Chandigarh Bench in the case of Charanjit Singh Samrala v. ITO [IT Appeal No. 234 (Chd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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