TMI Blog2021 (8) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... n an erroneous claim is based on a deliberate misrepresentation of facts or deliberate suppression of relevant material facts, that, a penalty is imposed after the deduction is denied. In this case, the deduction was ultimately allowed and, therefore, there was no question of levy of any penalty. - TAX APPEAL NO. 43 OF 2016 - - - Dated:- 2-8-2021 - SUNIL P. DESHMUKH M.S. SONAK, JJ Mrs. Susan Linhares, Advocate for the Appellant. Mr. R. G. Ramani, Senior Advocate with Mr. P. Kakodkar, Advocate for the Respondent. ORAL JUDGMENT (Per M.S. Sonak,J): 1. Heard Ms. Susan Linhares, the learned Advocate for the Appellant, and Mr. R. G. Ramani, the learned Senior Advocate with Mr. P. Kakodkar, Advocate for the Respondent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007,48,80,920. This return was taken up for scrutiny, and the Assessing Officer (A.O) vide his order dated 28/12/2012 concluded that the assessee made an incorrect claim of deduction in an amount of ₹ 451,27,84,122/- by disregarding the Judgment of the Hon'ble Supreme Court in the case of the respondent-assessee itself. On this basis, the A.O levied a penalty of ₹ 200,00,00,000/- under section 271C of the Income Tax Act 1963 (IT Act). 7. The respondent-assessee appealed the order dated 28/12/2012 and the Commissioner of the Income Tax (Appeals), allowed the appeal vide order dated 17/2/2014 and ordered the deletion of the penalty imposed by the A.O. 8. The appellant-revenue appealed the order dated 17/2/2014, but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re extracted from its own mines at market value for determining the true profit derived by the 100% EOU for the purpose of computing the income illegible for exemption u/s 10B. We also noted that the assessee has also purchased crude ore i.e ROM from outside parties i.e from mining belonging to the other parties. The price paid by the assessee to these outside parties, in our opinion can be regarded to be the best evidence for determining the market value of the crude ore used by the assessee extracting it from its own mines. Since the determination of market value requires verification on the part of the revenue, we, therefore, restore this issue only for determining the market value of the crude ore consumed by the assessee on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of this unit eligible for exemption after satisfying himself about the fair market value of 'tailings' after giving proper and sufficient opportunity to the assessee to prove the market value of the tailings used in the Codli unit and allow the assessee exemption to the assessee u/s 10 B of the Income-tax Act, 1961 for Codli unit on the profit so recomputed accordingly. The assessee is directed to adduce the necessary evidence on which it may rely to prove the market value of inputs before the assessing officer. Thus, the ground nos. 7, 8 9 are partly allowed. 11. The ITAT, whilst making its impugned order in the present matter naturally relied upon its order dated 8/3/2013 in ITA No.72/PNJ/2012 and held that since ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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