TMI Blog2016 (9) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... ack or DEPB license would be considered as derived from industrial undertaking. This controversy has been resolved finally by the Hon’ble Supreme Court on 31.08.2009 in the case of Liberty India Ltd. V. CIT (2009 (8) TMI 63 - SUPREME COURT ). When assessee has filed the return, this decision was not in picture. The decision of Hon’ble Gujarat High Court in the case of India Gelatine & Chemicals Ltd., reported in (2004 (4) TMI 20 - GUJARAT High Court ) was in favour of the assessee. Therefore, at that time, it was a quite debatable issue. The ld. CIT(A) has observed that in view of the decision of Hon’ble Supreme Court in the case of Pandian Chemicals Ltd. v CIT (2003 (4) TMI 3 - SUPREME Court ) or in the case of CIT v. Sterling Foods (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Judicial Member The assessee is in appeal before us against the order of ld. CIT(A)-VI, Ahmedabad dated 17.06.2011 passed for A.Y. 2001-02. 2. Solitary grievance of the assessee is that the ld. CIT(A) has erred in confirming the penalty imposed u/s.271(1)(c) of the Income Tax Act. 3. The brief facts of the case are that the return of income was filed by the assessee on 01.02.2002 declaring total income of ₹ 1,16,780/-. The assessment order was passed u/s.143(3) of the Income Tax Act on 26.03.2004 determining the total income at ₹ 59,34,440/-. Assessee carried the dispute up to the Tribunal and the Tribunal has set aside the issue with regard to computation of deduction admissible u/s.80HHC of the Act to the file of A.O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by assessee u/s.80IA of the Act has not been approved to the extent of ₹ 21,28,089/-, (b) Similarly, the claim made u/s.80HHC has been reduced by a sum of ₹ 12,86,726/-. As far as reduction with regard to the claim made u/s.80IA is concerned, the Assessing Officer has excluded following items: Particular Amount Interest Recd. 5,02,076 Misc. Income 6,66,404 Duty Draw Back 5,80,874 Sale proceeds of DEPB License 1,33,97,037 Total 1,51,46,391 While dealing with this issue, ld. CIT(A) has d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranted to the assessee. Therefore, in our opinion, before the decision of Liberty India Ltd. V. CIT(A) (supra), it was a debatable issue and for inclusion of these amounts for the purpose of claiming deduction u/s.80IA, assessee cannot be held guilty of concealing the particulars of income. We delete the penalty with regard to disallowance made in the claim of deduction u/s.80IA of the Act. 7. As far as the deduction claimed u/s.80HHC is concerned, it emerges out that against the original disallowance the issue travelled up to the Tribunal. The Tribunal has set aside the matter to the Assessing Officer. In the fresh assessment order, ld. A.O. has not initiated penalty proceedings against the assessee u/s.271(1)(c) of the Act. The A.O. ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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