2015 (3) TMI 60

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....r of Income-tax (Appeals) has erred in confirming the action of the Assessing Officer in levying a penalty u/s.271(1)(c) of the Act of Rs. 11,03,958/-. 2. It is therefore prayed that above penalty levied by Assessing Officer and confirmed by learned Commissioner of Income Tax (Appeals) may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal. 2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) rws 142(2A) of the Income Tax Act,1961 (hereinafter referred to as "the Act") was framed vide order dated 31/03/2008, thereby the Assessing Officer (AO in short) made addition on account of ....

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....in respect of Rs. 500/-, the assessee has written Rs. 10,000/-. He submitted that this being appeal against levy of penalty. The filing fee is only Rs. 500/- as per clause (d) of section 253(6) of the Act. He submitted that there was an inadvertent mistake and for that he offers unconditional apology to the Tribunal. The explanation of the assessee is found to be acceptable, however, the assessee is cautioned not to repeat this kind of mistake in future to avoid any confusion. The ld.counsel for the assessee in respect of the merit of the case submitted that, in quantum appeal, the assessee filed an appeal before the ld.CIT(A). The ld.CIT(A) vide order dated 08/09/2008 has confirmed the addition. He submitted that in respect of fall in GP o....

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....y the Hon'ble Tribunal vide order dated 12/08/2011 in ITA No.34967/Ahd/2008(supra). He drew our attention towards para- 14 of the order of the Coordinate Bench. In respect of disallowance of depreciation and deduction claimed u/s.80IB of the Act amounting to Rs. 2,32,001/-, the ld.counsel for the assessee submitted that in earlier years, the assessee claimed deduction u/s.80IB of the Act without claiming depreciation. He submitted that the AO and the special auditor have worked out the amount of disallowance u/s.80IB of Rs. 2,32,001/- being the deduction claimed at enhanced profit by not claiming the depreciation in the earlier years. He submitted that the Hon'ble Tribunal on the basis of the decision of Special Bench of ITAT in the case of....

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....espect of the addition of Rs. 25,46,363/- made on account of fall in GP and the addition made on account of disallowance of deduction amounting to Rs. 2,38,533/-, the AO has disallowed the deduction on the basis that the assessee did not disallow the interst of Rs. 5,82,803/-. The ld.counsel for the assessee submitted that the assessee had, in fact, disallowed the interest and rectification order u/s.154 of the Act was passed by the AO and rest of the disallowance was deleted by the Tribunal vide order dated 12/08/2011 in ITA No.3496/Ahd/2008 (supra). These facts are not controverted by the Revenue by placing any contrary material, therefore we hereby direct the AO to delete the penalty levied on an amount of Rs. 2,38,533/-. In respect of d....