2014 (1) TMI 177

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....cted at the business premises on 11.12.2003 where assessee made a surrender of Rs 30 lac. The assessee included this surrendered income as business income from exports in its profit and loss account. Since assessee was engaged in 100% export business it computed deduction under Section 80 HHC including this surrendered income of Rs 30 lacs in calculation. The assessee got its accounts audited and also obtained report from the Chartered Accountant as prescribed in law which certified the deduction under section 80 HHC including this income of Rs 30 lacs. The assessee filed its return with computation of income. In this computation of income he disclosed this fact of claiming deduction under section 80 HHC on this income of Rs 30 lacs. During....

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....f assessing officer in relying upon Punjab & Haryana High Court's decision in the case of National Legguard Works (supra) to the facts of assessee's case is not correct inasmuch as the assessee's financial year is 2002-03 whereas upon Punjab & Haryana High Court's decision came to be delivered on 22-9-2006. Therefore, the clear position of law was not available on the issue that in the case of exporter consequent to survey income surrendered cannot be treated as "business income" but as income from other sources. The fact that issue reached up to Hon'ble High court itself indicates that the issue was debatable which supports the contention of the assessee. (ii) The assessee disclosed the income as surrendered business income from exports i....

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....amount to addition to "business income" (iii) Further reliance is placed on the ratio of decision of Hon'ble Supreme Court in the case of CIT Vs. Reliance Petroproducts Ltd. (2010) 322 ITR 158 (SC) for the proposition that when assessee has furnished all the details along with return of income, variation or negation of claim of the assessee or change in head will not amount to either concealment of income or furnishing of inaccurate particulars of income. (iv) Further reliance is placed on: - CIT Vs. Amit Jain - ITA no. 683/2012, dated 21-12-2012 (Del.); - CIT Vs. Madhushree Gupta ITA no. 47/2013 dated 27-2-2013 (Del); 4. Ld. DR, on the other hand, placed reliance on Hon'ble Delhi High Court judgment in the case of CIT Vs. Zoom Communi....

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....able, still the assessee deferred with the statutory auditor and that claim was ultimately disallowed. Under these facts also the penalty u/s 271(1)(c) was not imposed as all the relevant facts were disclosed in the return of income to which Hon'ble Supreme Court judgment in Reliance Petroproducts Ltd. (supra) does not warrant levy of penalty. 5.1. In the instant case also the assessee was under bona fide belief that the income has been generated only from 100% export business and the disclosure was accordingly made as "business income" and claim u/s 80HHC accordingly calculated. The assessing officer took a different view relying on Punjab & Haryana High Court judgment which is rendered much after the assessee put up a claim. The assessee....