9911796707
TMI Blog2019 (12) TMI 1039X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee company is engaged in manufacturing and marketing of various pharmaceutical, consumer care, health care and diagnostic products. Assessment order under section 143(3) r.w.s.144C of the Income Tax Act, 1961 [ in short 'the Act'] was passed on 31/10/2012 interalia making additions/disallowances on following counts:- (i) Disallowance of provision for bonus under section 43B of the Act (ii) Addition on account of profits of overseas branch at Sri Lanka. Penalty under section 271(1)(c) of the Act were initiated for furnishing inaccurate particulars of income in respect of the aforesaid additions/disallwoances. The Assessing Officer vide order dated 30/09/2014 levied penalty of Rs. 81,39,619/- under section 271(1)(c) of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the first appellate authority has placed reliance on the decision of Tribunal in assessee's own case for assessment year 2001-02 decided on 28/06/2013, wherein the penalty levied under section 271(1)(c) of the Act was deleted on similar set of facts. The ld.Departmental Representative has not placed on record any material to show any change in facts in the assessment year under appeals or to distinguish the findings of the Tribunal in assessee's own case for earlier year. The order of CIT(A) on this issue is well reasoned, hence, we find no reason to interfere with the same. Accordingly the appeal of the Revenue is dismissed being devoid of any merit. 7. We further observe that tax effect involved in the present appeal is less than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion. Under such circumstances provisions of section 271(1)(c) of the Act are not attracted. In support of his contentions ld. Authorized Representative of the assessee placed reliance on the following decisions: (i) CIT vs. Reliance Petro Products Pvt. Ltd. 323 ITR 158(SC) (ii) DCIT vs. Indian Overseas Bank in ITA No.1990 & 1991/Mad/2011 A.Y 2006-07 and 2007-08 decided on 14/2/2013. 10.1 The ld. Authorized Representative of the assessee further submitted that the issue whether profits of foreign branch are liable to be taxed in India is a debatable issue. The Mumbai Bench of Tribunal in the case of DCIT vs. Essar Oil Ltd. for assessment year 2003-04 reported as 13 taxmann.com 151 has held that the profits of overseas branch are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income by the assessee. 12. We have heard the submissions made by rival sides and have perused the orders of authorities below. The only issue in appeal by the assessee is whether addition on account of profits of Sri Lanka branch is consequent to furnishing inaccurate particulars of income and hence, triggers penal provisions under section 271(1)(c) of the Act. A perusal of computation of income for the assessment year 2008-09 at page-1 of Paper Book reveal that the assessee has disclosed total profits before tax as per profits and loss accounts for the year ended 31/03/2008. This profit includes profit from Sri Lanka branch as well. Thereafter, the assessee has reduced the profits & losses of the overseas branch at Sri Lanka and Bangl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee in computation of income has already disclosed profits of Sri Lanka branch though, the same were subsequently reduced from the total taxable income by the assessee. Merely for the reason that the claim made by the assessee under bona-fide belief is not accepted by the Department penalty under section 271(1)(c) of the Act cannot be levied. Our this view is fortified by the decision rendered in the case of CIT vs. Reliance Petroproducts Ltd. (supra). 14. Thus, for the reasons given above, we find merit in the contentions raised by assessee. In our considered view it is not a fit case for levy of penalty under section 271(1)(c) of the Act. Consequently, the penalty levied in respect of non-disclosure of profits of Sri Lank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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