TaxTMI 
TaxTMI 
2015 (1) TMI 1210
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....andigarh in ITA No. 643/Chd/2011, without appreciating the fact that the Department has not accepted the said order dated 17.06.2013 and has filed appeal before the Hon'ble Punjab & Haryana High Court, Chandigarh which is pending on the following questions of law:- (i) Whether in the facts and circumstances of the case, the ITAT was right in law in holding that the freight subsidy received from the Himachal Govt. by the assessee is allowed to be included as profit derived from Industrial Undertaking and eligible as deduction u/s 80IC of the Income Tax Act, 1961, when it has been clearly laid down by Supreme Court in its decision in the cases of Cambay Electric Supply Industrial Co. Ltd. Vs. CIT 1978 (TR/SC) 50:/1978) 1/3 ITR 84/SC) that th....
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....of subsidy is not the business of assessee but scheme of Central Govt. and cannot be included in the profits eligible for deduction u/s 80IC. The ITAT was also not right in law in not appreciating the ratio of Hon'ble Supreme Court in the cases of M/s Liberty India Vs. CIT 225 CTR 23 (SC), CIT vs. Sterling Foods 153 CTR 439, 237 ITR 589, Vellore Electric Corporation Ltd. Vs. CIT 227 ITR 557 (HON'BLE SUPREME COURT. (iv) Whether in the facts and circumstances of the case, the ITAT was right in law in holding that the income from Sales Tax Deferment Rebate received by the assessee is allowed to be included as profits derived from industrial undertaking and eligible for deduction u/s 80IC of the Income Tax Act, 1961, when the assessee rece....
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....ied after considering the submissions made during the penalty proceeding. 3. On appeal it was mainly submitted that merely claim of deduction U/s 80IC would not lead to the conclusion that assessee has filed incorrect particulars of income or concealed any particulars of income. Further it was pointed out that similar addition have also been deleted by the Tribunal in Assessment year 2007-08. The Ld. CIT found force in the submission and deleted the penalty. 4. Before us Ld. DR strongly supported the order of AO. 5. On the other hand Ld. Counsel for the assessee submitted that issue is squarely covered by the decision of Tribunal in its own case for the Assessment Year 2007-08 in ITA No. 582/Chd/2014. 6. After considering the rival subm....
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..... 322 ITR 158 (SC), it is held that "A glance at the provisions of section 271(1)(c) of the Income Tax Act, 1961, suggests that in order to be covered in it, there has to be concealment of the particulars of the income of the assessee. Secondly the assessee must have furnished inaccurate particulars in his income. The meaning of the word "particulars" used in section 271(1)(c) would embrace the details of the claim made. Where no information given in the return in found to be incorrect of inaccurate, the assessee can't be the held guilty of furnishing inaccurate particulars. In order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision can't be invoked. By no stretch of imagination c....
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....Petroproducts Pvt Ltd, 322 ITR 158 (SC): "A glance at the provisions of section 271(1)(c) of the Income-tax Act, 1961, suggests that in order to bed covered by it, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars if his income. The meaning of the word "particulars" used in section 271(1)(c) would embrace the details of the claim made. Where no information given in the return is found to be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars. In order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By no stretch of imagin....