2013 (11) TMI 1374

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....the case, the ITAT was justified in deleting the penalty u/s 271(1)(c), though the claim of the assessee u/s 80IA was disallowed, by the ITAT by same order dated 05.09.2006 ? B) Whether on the facts and in the circumstances of the case, the ITAT, was justified in deleting the penalty merely on the ground that the claim of the assessee was debatable, as the Assessee has admitted that they have shifted its plant and machinery to the new premises previously used for the same purpose ? 3. Heard Smt. Asha Dessai, learned Senior Standing Counsel along with Shri Rao, learned Junior Standing Counsel appearing for the Appellant . 4. The facts in brief giving rise to the present Appeal are as under :- The Respondent-Assessee had filed his return ....

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.... of Income Tax. The learned Senior Standing Counsel therefore submitted that a substantial question of law as to when the the Income Tax Appellate Tribunal disallowed the claims of deduction under Section 80-IA, whether it is permissible for it to reverse the Order in so far as penalty is concerned? 6. It would be relevant to refer to the note appended by the Respondent- Assessee along with its returns for the assessement year 1994-95, which reads thus : "The company is eligible for deduction u/s 80-IA in respect of its entire gross total income as the only activity of the Company is the new industrial undertaking set up at Kundaim Industrial Estate. Kundaim, Ponda, Goa which commenced operation from 3-7-1993. The original cost of Plant a....