2015 (10) TMI 1431

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....an appeal filed by the assessee against the order of CIT(A)-18, Mumbai, dated 10-12-2012 for the assessment year 2002-03, in the matter of imposition of penalty u/s.271(1)(c) of the I.T. Act. 2. Rival contentions have been heard and record perused. In this case, penalty has been levied for revision in the amount of deduction claimed u/s.10A. While framing the assessment the AO has excluded the ....

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....rder, the CIT(A) modified the order of the AO by observing that STPI link charges cannot be part of export turnover and held that same should also be excluded from the total turnover. 5. With respect to the additions discussed above, the AO levied penalty u/s.271(1)(c) of the Act and the same was confirmed by the CIT(A) on the plea that assessee has wrongly claimed expenditure of eligible unit ....

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....o levy of penalty u/s.271(1)(c) of the Act. 8. On the other hand, the contention of ld. DR was that assessee has wrongly claimed expenditure of eligible unit against non-eligible unit so as to claim higher deduction u/s.10A, accordingly the AO was justified in levying penalty for such a wrongful claim. 9. We have considered rival contentions, carefully gone through the orders of the authorit....

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....case of every return where the claim made is not accepted by Assessing officer for any reason, the assessee would invite penalty under Section271(1)(c). That is clearly not the intendment of the Legislature." 10. In the instant case before us, the enhancement of Rs. 50,00,000/- was made by CIT(A). the penalty proceedings should be commenced in the course of, and before the completion of the pro....