2017 (5) TMI 1681

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....nder:- i. On the facts and circumstances of the case and the law, the Ld. CIT(A) erred in deleting the penalty levied u/s 271(1)(c) of Rs. 13,20,920/- on the excess amount of deduction claimed u/s 35(2AB) and ignoring the fact that during the appellate proceeding in appeal against the quantum addition before the Ld. CIT(A), the assessee did not press this ground of appeal against the quantum addition and the same was dismissed accordingly.   ii. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the penalty by relying on judgements of Hon'ble Supreme Courts where the facts were totally different and as penalty is liveable in the given set of facts ignored the facts recorded by ....

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....e of filing of the return as per the provisions of law and there is neither concealment of income nor furnishing of inaccurate particulars of such income and (ii) mere disallowance of the part of the expenses will not alter the bona fide claim of the assessee. The Ld. CIT(A) relied on the decision in Reliance Petro Products (P.) Ltd. 322 ITR 158 (S.C.), P V Rammanna Reddy vs. ITO (ITAT Hyderabad), CIT vs. Siddharth Enterprises (184 Taxmann 460) (P&H). Thus the Ld. CIT(A) deleted with penalty of Rs. 13,20,920/- imposed by the A.O. u/s 271(1)(c) of the Act.  5. Before us, the Ld. DR submits that only after being confronted by the A.O., the assessee vide note-sheet entry dated 22.12.2011 agreed to incorporating the amounts as per the r....

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....and capital expenditure Rs. 918.19 lacs, totalling to Rs. 2334.49 lacs. So there was a difference of Rs. 38.86 lacs and the A.O. added the same to the income of the assessee. The Ld. Counsel further submits that at the time of filing of the return of income, Form 3CL was not issued to the assesseecompany, therefore, the claimed amount was relied based on the tax audit report and the certificate. It is thus submitted that the weighted deduction was claimed as per the provisions of the Act. Further it is stated that the assessee has withdrawn the deduction in assessment proceedings and hence penalty is not leviable.    7. We have heard the rival submissions and perused the relevant material on record. We find that in the certific....