2012 (8) TMI 702

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessee is directed against the order passed by the CIT(A) on 28-01-2011 upholding penalty of Rs.33,75,372/- imposed by the AO u/s.271(1)(c) of the Act in relation to the assessment year 2002-03. 2. Briefly stated, the facts of the case are that the assessee claimed deduction u/ss.10A/10B , inter alia, on interest income on deposits and interest income from staff loans. The action of the AO i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s granted deduction u/s.10A on the interest income earned on deposits. Even though the assessee remained unsuccessful before the Tribunal on the question of inclusion of such interest income in the eligible profit for allowing deduction u/s. 10A/10B, still it cannot be said that the assessee could not have entertained a bona fide view about the eligibility of such interest income for the purposes ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....turn, which were not found to be inaccurate, the Hon'ble Supreme Court has held that no penalty could have been imposed in this regard. The facts of the instant case bear close resemblance inasmuch as the assessee made a claim u/s.10A/10B on the interest income by disclosing all the necessary particulars of income in this regard. Further, the question of eligibility or otherwise of such interest i....