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The DCIT Central Circle- 3 Jaipur Versus Smt. Renu Agarwal

2016 (12) TMI 1647 - ITAT JAIPUR

Penalty u/s 271(1)(c) - disallowance of deduction claimed u/s 80IB - Held that:- It is noted from the records that the claims made by the assessee were based on experts advice and backed by certification issued in Form 10CCB. It is also noted that the revised return so filed was also a valid return filed within the stipulated time. The ld. AR relied on the decision of Jurisdictional High Court in the case of Chander Pal Bagga & Harshvardhan Chemicals Ltd [2002 (5) TMI 15 - RAJASTHAN High Court ] .....

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cial transaction and the assessee received money from the company against the agreement to sale of land to the company and assessee has provided all the evidence in support of her contention. Thus in view of the above facts and circumstances of the case, we concur with the findings of the ld. CIT(A) on the issue in question. Thus the appeal filed by the Revenue is dismissed. - ITA No. 764/JP/2015 - Dated:- 20-12-2016 - SHRI BHAGCHAND, AM & SHRI KUL BHARAT, JM Revenue by :Shri Nasir Ali, CIT .....

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CIT(A) is as under:- 3.1.3 I have duly considered assessee's submission and carefully gone through penalty order passed by the AO. I have also perused the facts of the case. On perusal, following points emerge:- (i) The AO levied penalty u/s 271(1)(© in respect of disallowance of deduction claimed u/s 80IB of the Act amounting to ₹ 4,58,25,167/- by holding the assessee had made a wrong claim of deduction u/s 80IB of the Act. The factual position is that the assessee claimed deduct .....

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rts advice. In the case of Guru Pragya, the claim of deduction of 80IB for A.Y. 2010-11 was disallowed by the AO for want to completion certificate but the same as allowed by CIT (Appeals)-1, Jaipur vide order dated 24-2-2015 in ITA No. 25/13-14. However, the assessee withdrew her claim of deduction u/s 80IB by filing revised return u/s 139(5) of the Act within the time allowed by the Act and also paid taxes alongwith interest thereof. It is also pertinent to mention note that the assessee filed .....

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9;'the act of not including or not doing''. Further, the dictionary meaning of MISTAKE is ''an action or an opinion that is not correct''. Therefore, the action of withdrawal of 80IB claim comes within the purview of mistake. AO has summarily rejected the explanation of the assessee with regard to the revised return filed. (ii) AO has levied penalty u/s 271(1)© on the ground of furnishing of inaccurate particulars of income by the assessee. It is a fact that clai .....

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Court in the case of Price Waterhouse Coopers (P) Ltd. (supra) has held that inadvertent and bona fide error does not amount to concealment or furnishing of inaccurate particulars. (iii) Even otherwise also as per sub clause 3 of Section 271AAA of the Act, no penalty is levibale u/s 271(1)© of the Act on the facts and circumstances of the case. (iv) It is also a fact that deemed dividend u/s 2(22)(e) is a deeming provision and addition was made on the basis of entries in the regular books .....

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contention. AO has simply rejected the explanation without any positive materials which can be prove assessee's explanation as false or untrue. In view of facts and circumstance of the case as mentioned above, levy of penalty of ₹ 1,47,78,000/- u/s 271(1)© of the Act cannot be sustained, hence deleted.'' 2.2 During the course of hearing, the ld. DR relied on the order of the AO. 2.3 During the course of hearing, the ld. AR of the assessee supported the order of the ld. CI .....

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commercial plot after getting the same approved from JDA (i.e. Jaipur Development Authority). The assessee filed return of income declaring total income at ₹ 7,11,74,000/-/- on 27-09-2011 u/s 139(1) (Copy at PB Page 8-12). In original return filed u/s 139(1), she claimed deduction of ₹ 4,58,25,167/- u/s 80IB(10) against the joint venture housing project with Guru Pragya Infrastructure Pvt Ltd. In support of this claim, the assessee filed Certificate of CA in Form No 10CCB (Copy at PB .....

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at ₹ 11,69,99,170/- (Copy at PB Page 43-47) and due taxes were paid alongwith the revised return thereon. In the assessment, the AO made a further addition of ₹ 20,00,000/- on account of deemed dividend u/s 2(22)(e) of Income Tax Act, 1961 treating the business advance taken from company naming M/s Ashish Buildcon Pvt Ltd as loans & advances covered u/s 2(22)(e) of Income Tax Act, 1961 (Copy of order at PB Page 156 to 182). The AO rejected the submission of the assessee because o .....

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land and not from development of project. (v) findings have been noticed by the A.O. at the time of assessment, hence penalty u/s 271(1)(c) can be imposed and there is no overlapping with section 271AAA. (vi) Penalty is imposed for intentionally filling inaccurate particulars of income. The AO thus passed an order under section 271(1) (c) of I.T. Act, 1961 imposing a penalty of ₹ 1,47,78,000/- being 100% of tax leviable on following income treating the same as concealed income of the asse .....

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