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2020 (11) TMI 114
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....est of revenue, is opposed to law and facts and circumstances of the case. 2. The CIT(A) has erred in allowing the appeal of the assessee on the issue of disallowance of R & D expenditure amounting to Rs. 4,94.90,503/- for the AY 2002-03 respectively by relying on the decision of Hon'ble Supreme Court in the case of CIT v. Reliance Petro Products Pvt. Ltd. without appreciating that the facts are totally different from the case of the assessee company, in as much as the addition in the relied upon case was on account of disallowance tinder section 14A and there was no finding that any in Formation Furnished by the assessee were found to be incorrect or erroneous or false while in the instant case the addition is made on account ....
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....ut of it's own research and development. Ld.AO opined that assessee did not fulfill the conditions contemplated under section 35(1)(iv) of the Act. Ld.AO therefore initiated penalty proceedings. Assessee preferred appeal before Ld.CIT(A) against the disallowance, which was dismissed by order dated 30/05/2008. 4. Be that as it may, subsequently, Ld.AO issued notice calling upon assessee to furnish any written submission if assessee wishes to rebut the levy of penalty under section 271(1)( c) vide letter dated 12/06/2008. In the penalty order so passed by Ld.AO dated 30/12/2008 it has been recorded that there was no response to the intimations issued to assessee and Ld.AO levied penalty for furnishing inaccurate particulars of income un....
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....y on the basis that merely a disallowance of claim towards research cannot lead to furnishing of inaccurate particulars or concealment by assessee which is without any basis. He thus submitted that the issue may be remanded to Ld.CIT(A), as necessary actions in respect of verification with the board regarding activity by assessee constituting scientific research and development during the relevant period was not taken. 10. None appeared on behalf of assessee today though the date of hearing has been informed to assessee by the revenue which is substantiated by letter dated 21/10/2020 intimating service of notice. The acknowledgment of service proves that assessee was intimated regarding date of hearing on 21/10/2020. 11. We are the....