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TMI Blog2017 (10) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... d together and are being disposed of by this common order for the sake of convenience, by dealing with assessment year 2005-06. 2. First we deal with ITA No. 3504/Del/2013 for AY 2005-06 wherein the following grounds have been raised. i) The CIT(A) has erred in deleting the penalty of Rs. 2,07,46,650/- u/s. 271(1)(c) of the Income Tax Act, 1961. ii) The appellant craves to amend modify, alter, add or forego any ground of appeal at any time before or during the hearing of this appeal. 2.1 In other Appeal, identical issues are involved and similar grounds have been raised, the only difference is in the figures involved. 3. The brief facts of the case are that return in this case was filed at an income of Rs. 36,16,57,100/- on 31.10.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in financial statements and tax returns and allegations of concealments or filing of inaccurate particulars of income is completely contradictory to the facts of the case and settled principles of law. He further stated that the issue no. 1 relating to depreciation in respect of Daruhera Unit is concerned. In this case the Hon'ble High Court has ruled that this issue is in favour of the assesee vide order dated 24.1.2017 passed in ITA No. 14/2012 and attached the copy thereof with the Synopsis; as regards issue no. 2 relating to excess depreciation on license fee paid for computer service is concerned, by attaching the copy of the AO dated 6.9.2016, it was stated that the order of the AO dated 6.9.2016 giving effect to Tribunal's order a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the assessment or the assessee proceedings should not attract penalty under section 27l(l)(c) of the Act. We note that section has been inserted to prevent assessee's from evading taxes by means of false and bogus claims. The under mentioned cases elucidate the principle that a mere non acceptance of a claim and addition on that account do not entitle the revenue to impose penalty under section 271 of the Act. Further, the Assessing Officer had not questioned the genuineness of the expenditure and therefore mere disallowance in the assessment order cannot per-se become a basis for levy of penalty as levied in this case. Reliance in this regard is placed on the following: * Reliance Petroproducts Private Limited (322 ITR 158) (SC), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed allowance of 4/5th of legal and other expenses on restructuring of business amounting to Rs. 1,37,65,600/- (to be allowed in equal instalments in four subsequent assessment years) is concerned, we find that the question of law has been admitted by the Hon'ble Delhi High Court which demonstrate clearly that the Court is satisfied that the issue involved is a substantial question of law and a legal scrutiny of the issue is essential. Admission of substantial question of law by High Court shows that the claim of the assessee was debatable and also lends credence to the bonafide of the claim. We are of the considered view that it is settled law that no penalty is leviable in cases where a question of law is admitted in the Hon'ble High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. During the course of assessment proceedings, the assesseee had provided the necessary explanations and made due submissions dated 05 December 2008, which were supported by sufficient documentation and guided by judicial decisions. Keeping in view of the detail discussion as above, we are of the view that there is no case of penalty. Hence the minimum penalty imposed by the Assessing Officer was rightly cancelled, which does not need any interference on our part, hence, we uphold the same and reject the ground no. 3. 8. Keeping in view of the facts and circumstances and the precedent relied upon, we are of the considered view that the minimum penalty of Rs. 2,07,46,650/- was rightly deleted, which does not need any interference on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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