THE DCIT, CIRCLE-1, SURAT vs. NEO STRUCTO CONSTRUCTION LTD., SURAT

Assessee by None Revenue by Mrs.Anupma Singla,Sr-DR Date of hearing 27.12.2021 Date of pronouncement 27.12.2021 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by Revenue is directed against the order of ld. Commissioner of Income tax (Appeals)-1, Suratdated 20.06.2011, which in turn arises out of penalty levied under section 271(1)(c) of the income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 17.03.2011for assessment year (AY) 2006-07. The Revenue has raised the following grounds of appeal:- “[1]. On the facts and circumstances of the case and in law, the Ld. CIT(A)-1, Surat has erred in deleting the penalty imposed u/s 271(1)(c) of the I.T. Act of Rs.23,81,576/- despite the fact that the expenses claimed by the assessee were not allowable under section 37(1) of the I.T. Act. However, assessee deliberately claimed the expenses with a conscious view to reduce the Income-Tax liability. Further, despite giving an opportunity, the assessee failed to offer an explanation for furnishing inaccurate particulars of income.”