2025 (7) TMI 124

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....owing grounds of appeal: "1.0 That on the facts and in the circumstances of the case, the imposition of penalty and interest with reference thereto has been grossly unjustified, erroneous and unsustainable and necessary direction be given to the AO to give appropriate relief in accordance with law. 1.1 That on the facts and in the circumstances of the case, the Ld. CIT-(A) erred in upholding the penalty order passed in utter disregard to the provisions of the Act and hence, was illegal and void ab initio. 2.0 That on the facts and in the circumstances of the case, the Ld. CIT-(A) erred in sustaining the penalty imposed u/s 270A of the Act for disallowance of claim of leave encashment without considering the fact t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the case, the Ld. CIT-(A) erred in upholding the levy of penalty equal to two hundred percent of the amount of tax payable on under-reporting of income in consequence of misreporting, without considering the fact that the appellant's case does not fall under any clause of Section 270A(9) of the Act. 8.0 That the appellant craves leave, to add, to amend, modify, rescind, supplement, or alter any of the grounds stated here-in-above, either before or at the time of hearing of this appeal." 2. The brief facts of the case are the assessee company, engaged in the business of manufacturing and trading of Power & Energy, had filed its return of income declaring a total income of Rs. 118,61,64,030 by claiming refund of Rs. 6,35,89....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... encashment expenditure wherever required and the Ld. CIT-(A) erroneously upheld the levy of penalty equal to two hundred percent of the amount of tax payable on under-reporting of income in consequence of misreporting, without considering the fact that the appellant's case does not fall under any clause of Section 270A(9) of the Act 4. Per Contra, Ld. CIT(DR) has relied upon the orders of the authorities below. 5. In the course of hearing, the Learned AR submitted that during the year under consideration, assessee made the provision for leave encashment by relying upon various judicial pronouncements wherein leave encashment has been allowed on provisional basis i.e. by the coordinate bench in the case of M/S Sicpa India Pvt Ltd ....