2020 (4) TMI 708

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.... crux of the issue is that the Ld. CIT (A) has erred in upholding the levy of penalty U/s. 271(1)(c) of the Act by the Ld. AO. 3. At the outset, the ld. AR submitted before us that there is a delay of 20 days in filing the appeal before the Tribunal. In this regard, Ld. AR drew our attention to the affidavit filed by the assessee seeking condonation of delay. Relevant portion of the said affidavit is extracted hereinbelow for reference: "In this regard, we have waited for the consequential order from the DCIT, Circle-17(2), Hyderabad against CIT (A) order and have approached the DCIT for the issuance of such consequential order to file the appeal before the Hon'ble Income Tax Appellate Tribunal. In the course, we learnt that as ....

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....ht to be evaded which works out to Rs. 25,97,019/- (30% of 86,56,730/-) on the ground that "the assessee had failed to offer explanation in respect of the material to the computation of the total income and also failed to prove that all the facts relating to the material to the computation of income have been disclosed by it". On appeal, the ld. CIT (A) after considering the written submissions filed by the assessee confirmed the penalty levied by the Ld.AO agreeing with his view. 6. Before us the Ld. AR submitted that the expenditure incurred towards scientific research was disclosed in the tax audit report under clause 19 and therefore it cannot be presumed that the assessee had concealed income or furnished inaccurate particulars of i....

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....a also supports the case of the assessee wherein it was held as follows: "Adverting to the facts of the instant case we find that the assessee had bona fidely made a claim for deduction U/s. 35 in respect of cost of car purchased for the purchase of R & D activity by disclosing all the necessary particulars in the audit report. The facts that the car was purchased by the assessee and also used for the purpose of the business have not been controverted by the Assessing Officer. Further, the granting of depreciation at 20 per cent instead of hundred percent deduction claimed by the assessee shows that there was a genuine difference of opinion between the assessee and the Assessing Officer on this aspect of the matter. It cannot be sa....