TMI Blog2016 (11) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act were not attracted in the case. - Decided in favour of assessee - Income Tax Appeal No. 179 of 2016 - - - Dated:- 9-11-2016 - Hon'ble Bharati Sapru And Hon'ble Vivek Kumar Birla, JJ. For the Appellant : Ashok Kumar, Manu Ghildyal For the Respondent : Nishant Misra ORDER We have heard Sri Manu Ghildyal learned counsel for the department and Sri S.D. Singh learned senior advocate assisted by Sri Nishant Misra learned counsel for the assessee. This is income tax appeal filed by the revenue under section 260A of the Income Tax Act, 1961 against an order passed by the tribunal dated 27.8.2015 for the assessment year 2003-04. The only question of law which is sought to be answered is question no.'C& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s dismissed by the order dated 27.8.2015 by which it held that the issue of deduction u/s80IB and section 80HHC of the Act on export incentive was a debatable issue and the controversy was set at rest by the Hon'ble Supreme Court in the case of Liberty India versus Commissioner of Income Tax, reported in 317 ITR 218 therefore the penalty should not be levied under section 271(1)(C) of the Act. Learned counsel for the department has sought to argue that regardless of the fact that the assessee had made surrender of a sum of ₹ 2 crores, it would not come in unity to the assessee against the penalty proceedings and the deletion of the penalty by the tribunal under section 271 (1)(C) was therefore bad. Per contra, learned counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout during the course of assessment proceedings that the assessee is eligible for the said deduction in view view of the provisions of the said section and also in view of the several decisions. It is also an admitted fact that both decisions of Ritesh Industries Ltd. and Taxation Laws Amendment Act, 2005 came subsequently to the filing of the return by the assessee. A subsequent event cannot form the basis of treating the return filed earlier or false or incorrect. The decision of the Apex Court in the case of Reliance Petro Products Ltd. 322 ITR 158 has held as under: S.271(1)(C) penalty cannot be imposed even for asking unsustainable claims. It is this order of the Commissioner of Income Tax (Appeals) which has been affirmed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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