2019 (12) TMI 1039

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....he case as emanating from the records are: The assessee company is engaged in manufacturing and marketing of various pharmaceutical, consumer care, health care and diagnostic products. Assessment order under section 143(3) r.w.s.144C of the Income Tax Act, 1961 [ in short 'the Act'] was passed on 31/10/2012 interalia making additions/disallowances on following counts:- (i) Disallowance of provision for bonus under section 43B of the Act (ii) Addition on account of profits of overseas branch at Sri Lanka. Penalty under section 271(1)(c) of the Act were initiated for furnishing inaccurate particulars of income in respect of the aforesaid additions/disallwoances. The Assessing Officer vide order dated 30/09/2014 levied ....

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....al has assailed deleting of penalty in respect of provision for bonus. We find that the first appellate authority has placed reliance on the decision of Tribunal in assessee's own case for assessment year 2001-02 decided on 28/06/2013, wherein the penalty levied under section 271(1)(c) of the Act was deleted on similar set of facts. The ld.Departmental Representative has not placed on record any material to show any change in facts in the assessment year under appeals or to distinguish the findings of the Tribunal in assessee's own case for earlier year. The order of CIT(A) on this issue is well reasoned, hence, we find no reason to interfere with the same. Accordingly the appeal of the Revenue is dismissed being devoid of any merit. 7. ....

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....lment or furnishing of inaccurate particulars of income. It is a case of difference in opinion. Under such circumstances provisions of section 271(1)(c) of the Act are not attracted. In support of his contentions ld. Authorized Representative of the assessee placed reliance on the following decisions: (i) CIT vs. Reliance Petro Products Pvt. Ltd. 323 ITR 158(SC) (ii) DCIT vs. Indian Overseas Bank in ITA No.1990 & 1991/Mad/2011 A.Y 2006-07 and 2007-08 decided on 14/2/2013. 10.1 The ld. Authorized Representative of the assessee further submitted that the issue whether profits of foreign branch are liable to be taxed in India is a debatable issue. The Mumbai Bench of Tribunal in the case of DCIT vs. Essar Oil Ltd. for asse....

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....e assessee. The ld.Departmental Representative submitted that it is a clear case of furnishing inaccurate particulars of income by the assessee. 12. We have heard the submissions made by rival sides and have perused the orders of authorities below. The only issue in appeal by the assessee is whether addition on account of profits of Sri Lanka branch is consequent to furnishing inaccurate particulars of income and hence, triggers penal provisions under section 271(1)(c) of the Act. A perusal of computation of income for the assessment year 2008-09 at page-1 of Paper Book reveal that the assessee has disclosed total profits before tax as per profits and loss accounts for the year ended 31/03/2008. This profit includes profit from Sri Lanka....