2016 (8) TMI 611

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessee has filed its return of income on 30/11/1998 declaring the total income at Rs. 2,70,35,810/- and the order under Section 143 (3) of the IT Act came to be passed determining the total income at Rs. 3,03,37,294/- and made following disallowance of Rs. 17,54,739/- in respect of depreciation on technical knowhow, Rs. 10,95,515/- in respect of custom duty and Rs. 8,33,185/- in respect of interest paid on APSEB and penalty proceedings under Section 271(1)(c) of the Act were also initiated and ultimately the penalty at 100% of the tax sought to be evaded which is worked at Rs. 9,05,773/- was levied. 2.1 Against the said order, the assessee preferred an appeal before the CIT (A) which has allowed the appeal of the assessee and penalty ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... under section 35AB is calculated as under: [a] In respect of technical knownow acquired in 93-94 (Rosernmudn A.G.) 1st Installment 1/5th Rs. 1238333/- (Rs.1486000/-Rs. 247667) 2,47,667 [b] In respect of exchange rate difference paid to Edlon Products Inc. in A.Y. 94-95 1/5th of Rs. 31,033/-(Rs.37249-Rs. 6206) 6206 [c] In respect of technical know how acquired in A.Y. 95-96 (Second & Third instalemnt to Rosenmund A.G.) 1/5TH of Rs. 2883105/-( Rs. 3459725-Rs. 576620) 5,76,620 [d] In respect of technical know how acquired in A.Y. 96-97 (paid to Reosenmund A.G.) 1/5th of Rs. 52,93,500/- (Rs.52,93,500 -Rs.8,82,250) 8,82,250   Total 17,12,743" 6. Clause7 in the Notes with regard to interest re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ative has filed copy of Assessment order for A.Y. 1995-96 dated 27-3-1998 wherein issue was first raised by the Assessing Officer. The APSEB had claimed damages including interest payable thereon in City Civil Court at Hyderabad. On account of order of City Civil Court, the appellant had claimed this interest payable to APSEB. Then the appellant filed petition before Andhra Pradesh High Court which stayed the order of City Civil Court. In A.Ys. 1995-96 to 1997-98 the disallowance of claim of damage and interest was made by A.O. and the same was allowed by CIT (A) and the matter is pending before I.T.A.T. In respect of the disallowance, no penalty has been initiated in A.Y. 1995-96 and it was submitted by the Counsel that the matter has been....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Counsel Mr.Soparkar appearing for the appellant has contended that the claim which has been made was specifically mentioned that this will be subject to the riders which is pending before the Tribunal. He has contended that in view of decision in case of Commissioner of Income-tax, Ahmedabad v. Reliance Petroproducts (P) Ltd., [2010] 189 Taxman 322 (SC) whereby the issue of penalty imposed under Section 271(1)(c) of the Act was considered for concealment of income and held in favour of the assessee. 4.3 Learned Senior Counsel has also drawn attention of this Court to a decision of this Court in case of Geeta Prints (P.) Ltd. v. Assistant Commissioner of Income-tax [2013] 33 taxmann.com 393 (Gujarat) wherein this Court has held that the a....