2018 (2) TMI 1466

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.... law for our consideration: Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the penalty ignoring the provisions of Section 271(1)(c) of the Act? 3. For the assessment year 200405, a notice under Section 148 was issued to the Respondent seeking reopening the assessment, completed under Section 143(3) of the Act. 4. The Respondent-Assessee had filed its return of income for the subject assessment year which was assessed to Rs. 54.52 Crores on 19 December 2008 as a consequence of giving effect to the order of the Commissioner of Income Tax (Appeal) (CIT(A)). Thereafter, the assessment was reopened under Section 148 of the Act, on the ground that the deduction claimed under S....

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....s institution consequent to the enquiries conducted by the C.B.I. The Respondent filed its return of income on 12 February 2008 consequent to the reopening notice and in that return, the Respondent did not claim deduction of Rs. 1.00 Crore donation to M/s. Indian Medical Scientific Research Foundation, Agra, which is now found to be bogus. The assessment proceedings were thereafter, completed under Section 143(3) read with Section 147 of the Act was completed on 22 December 2008. In the above circumstances, it was submitted that no penalty is imposable under Section 271(1)(c) of the Act. However, the Assessing Officer was not satisfied and by an order dated 24 June 2009 imposed a penalty of Rs. 89.68 Lakhs under Section 271(1)(c) of the Act....

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....ice, the Respondent had not made a claim deduction of Rs. 1.00 Crore for donation, inspite of donation made to M/s. Indian Medical Scientific Research Foundation, Agra. The said Research Foundation was not known to be a bogus institution both at the time the donation and claim was made in the return of income filed in regular assessment proceedings under Section 143(3) of the Act. The foundation carried out its activities under a notification issued by the Central Government which entitled donations made to it, the benefit of Section 35(1) of the Act. We further find that during the course of regular proceedings itself the Respondent-Assessee brought it to the notice of Assessing Officer that there is a C.B.I. enquiry proceedings against th....