TaxTMI 
TaxTMI 
2013 (1) TMI 677
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....the Assessing Officer of Rs. 4,62,127/- without appreciating the fact that the assessee had claimed excess deduction u/s 10A on account of unrealized export proceeds which was not allowable to the assessee in view of the specific provisions of Section 10A(3). 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in deleting the penalty u/s 271(1)(c) without considering the decision of the Delhi High Court in the case of CIT vs. Zoom Communication Private Limited reported in (2010) (327 ITR 510). 2. The solitary issue is with regard to the deletion of penalty u/s 271(1)(c) of Rs. 4,62,127, levied by the AO. 3. The facts of the case are in the return of income filed u/s 139, the assessee claimed exem....
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.... the appellant along with its audit report that certain export sales were not realized. Since, the export realization is governed by the RBI guidelines, with extended time from 6 months to 1 year; therefore, there will be a time gap between the claim of the appellant which is based on the actual export sales and its realization. The appellant had himself revised the computation and has made a reduced claim in accordance with what was admissible to it. Therefore, by no stretch of imagination, it can be said that the appellant had made inaccurate claim or filed inaccurate particulars of income. It is also a matter of act that the Ld. AO in AY 2005-06 vide his order dated 14th March 2001 dropped the penalty proceedings on the similar set of fa....
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....is in appeal. 9. Before us, the DR relied on the facts narrated by the AO in the assessment proceedings and in the penalty proceedings and relied on the decision of Delhi High Court in the case of Zoom Communication (P) ltd. reported in 327 ITR 510 and submitted that the penalty was rightly levied on the assessee. 10. The AR, on the one hand pointed out that if at all, the penalty is to be levied, concealment of income or inaccurate particulars of income must emanate from the return of income. He, on other hand, reiterated his submissions made before the revenue authorities and submitted that the information with regard to non receipt of export proceeds of SEEPZ and STPI units were communicated to the department vide its Audit report ....
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....ware Ltd. in ITA No. 861 & 861/Del/2001, reported in 147 TTJ 67 (Del), wherein the coordinate Bench observed, "the assessee claimed deduction on the basis of report dated 27.11.2003 of the CA in form no. 56 F & 10CCAF. In note no.4 in Annexure A to form 10CCAF & 56F, it was clearly mentioned that an amount of Rs. 47,52,071/- on account of export proceeds was not realized before the end of six months from the end of the FY 2002-03 and an application for extension of time to the competent authority was made. It was also mentioned that calculation for deduct ion u/s 10A & 80HHE proceeded on the basis that permission of the competent authority would be forthcoming. Similarly in the note 2 in annexure to form 10CCAF & 56F dated 30th Oct....
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....as to which specific particulars were furnished inaccurate or were concealed. The expression 'has concealed the particulars of income' and 'has furnished inaccurate particulars of income' have not been defined either in section 271 or elsewhere in the Act. However, notwithstanding the difference in the two circumstances, it is now well established that they lead to the same effect namely, keeping off a certain portion of the income from the return. According to Law Lexicon, the word "conceal" means: "to hide or keep secret. The word 'conceal' is con+celare which implies to hide. It means to hide or withdraw from observation; to cover or keep from sight; to prevent the discovery of; to withhold knowledge of. The offen....
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.... penalty is imposable on the assessee, in a circumstance wherein the assessee had rendered the entire information to the AO with regard to unrealized export proceeds. The facts germane in the present context are, that along with the return of income, the assessee filed its Audit Report and Form No. 56, intimating the realized and unrealized portions of export proceeds. We also find from the papers appended by the assessee in its APB that before the finalization of assessment for the current year, the assessee had realized substantial export proceeds and, dutifully, it was submitted before the AO, as to how much unrealized export proceeds have been received by it and for which unit. In these circumstances, since the assessee had made adequat....