2014 (11) TMI 1035

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....ndent: Smt. Asha Desai, DR O R D E R PER P.K. BANSAL 1. This appeal has been filed by the Revenue against the order of CIT(A) dt. 17.2.2014 by taking the following effective grounds of appeal : "2) The Ld CIT(A) has erred in deleting penalty u/s 271(1)(c) on the ground that Hon'ble ITAT allowed the appeal in assessee's quantum appeal on the issue of the claim of deduction u/s 10B whereas i....

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.... claim of deduction, knowing fully well that it is not entitled for such deduction, it amounts to furnishing inaccurate particulars of income leading to concealment of income and makes it a deliberate attempt to evade due taxes to the Government. It may be mentioned here that there are a number of big companies in the state of Goa, such as Chowgule & Co. Ltd., V.M. Salgaocar & Brothers Pvt. Ltd., ....

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..../s 271(1)(c) is equivalent to @100% of the tax works out to Rs. 153,38,95,323/- and the maximum penalty @ 300% of such tax comes to Rs. 460,16,85,969/-. Therefore, after considering the assessee's explanation and overall facts and circumstances of the case and following the ratio of various decisions discussed above, I hereby levy penalty of Rs. 200,00,00,000/- u/s 271(1)(c) of Income Tax Act, 196....

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....; All the three issues were examined by the Hon'ble ITAT and the decision has come in favour of the appellant. In my opinion, since the ITAT has set aside the disallowance made by the A.O on the basis of which penalty proceedings u/s 271(1)(c) was initiated and penalty was levied and has allowed 10B claim of the appellant in respect of all the 100% EOU's, it can not be said that the appellant....