2020 (1) TMI 1481

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....acts and circumstances of the case and in law, the Ld. CIT (A) erred in deleting the penalty of Rs. 6,18,20,680/-, imposed u/s 271(1) (c) of the Income Tax Act,1961. 2. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating that the expenditure incurred on construction of Bus Queue Shelter is actually capital in nature and penalty levied u/s 271(1)(c) was levied on the same and is warranted. 3. That on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the penalty imposed u/s 271(1)(c), not appreciating the fact that the claim of the assessee in relation to expenditure incurred on construction of Bus Queue Shelter is of capital nature. The assessee ....

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....go any grounds(s) of the appeal raised above at the time of the hearing." 3. The assessee is engaged in the business of providing 'out-of-home' advertising solutions and specializes in street furniture and bill boards at public place, such as airports, railway stations, bus stands, metros, public utilities etc. For the A.Y. 2007-08, the assessee filed the return of income on 14.11.2007 declaring total income of Rs. 8,88,191/-. The assessee filed revised return on 31.03.2009 declaring loss of Rs. 21,45,65,137/- after claiming an expenditure of Rs. 18,36,62,148/- spent on account of construction of Bus- Queue-Shelters (BQS) as revenue expenditure u/s 37 of the Act. In so far as the A.Y. 2008-09 was concerned, the assessee filed return of i....

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..../s 271(1)(c) of the Act. 4. Being aggrieved by the penalty order, the assessee filed an appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee in both the assessment year. 5. The Ld. DR submitted that the Ld. CIT (A) erred in deleting the penalty of Rs. 6,18,20,680/-, imposed u/s 271(1) (c) of the Income Tax Act,1961 and not appreciating that the expenditure incurred on construction of Bus Queue Shelter is actually capital in nature and penalty levied u/s 271(1)(c) was levied on the same and is warranted. The Ld. DR further submitted that the assessee too did not press the ground before the Tribunal in quantum which tantamount to concealment or furnishing of inaccurate particulars of income U/s 271(1)(c) of the Income....