VISCUS INFOTECH LIMITED,INDORE vs. INCOME TAX OFFICER 4(3), INORE

आदेश / O R D E R

PER KUL BHARAT, J.M: This appeal by the assessee pertaining to the

assessment year 2009-10 is against order of the CIT(A)-II,

Indore dated 18.9.2017. The assessee has raised following

grounds of appeal:

[ITA 708/Ind/2017] [M/s. Viscus Infotech Limited, Indore] 1. On the facts and in the circumstances of the case, Ld. CIT(A) erred in confirming the penalty u/s 271(1)(c) of the Act. 2. Appellant reserves right to add, alter or amend any of the grounds of the appeal. 2. The only effective ground is against confirming the

penalty u/s 271(1)(c) of the Income Tax Act, 1961

(hereinafter called as ‘the Act’). The facts giving rise to the

present appeal are that case of the assessee was reopened

and the assessment u/s 148 r.w.s. 143(3) of the Act was

framed vide order dated 16.2.2015. While framing the

assessment, the A.O. disallowed claim of deduction u/s

10B of the Act and initiated penalty u/s 271(1)(c) of the

Act. Subsequently, penalty of Rs.3,44,995/- was imposed.

Aggrieved by this, the assessee preferred an appeal before

Ld. CIT(A), who after considering the submissions

confirmed the penalty. Now the assessee is in appeal

before this Tribunal. Ld. Counsel for the assessee

reiterated the submissions as made in the written

synopsis. The submissions of the assessee are as under:

[ITA 708/Ind/2017] [M/s. Viscus Infotech Limited, Indore]

[ITA 708/Ind/2017] [M/s. Viscus Infotech Limited, Indore] 3. Per contra, Ld. D.R. opposed these submissions and

supported order of the Ld. CIT(A).

materials available on record and gone through the orders

of the authorities below. It is the case of the assessee that

the mistake was bonafide. He submitted that due to

amendment in law, the deduction u/s 10B of the Act was

withdrawn by the Finance Act, 2007 w.e.f. 1.4.2008. The

reliance is placed on the judgement of the Hon'ble Delhi

High Couirt rendered in the case of CIT Delhi-2 Vs. Compro

Technologies P. Ltd. (2015) 55 Taxmann.com 180 (Del) and

the judgement of the Hon'ble Supreme Court in the case of

Price Waterhouse Coopers Pvt. Ltd. Vs. CIT (2012) 348 ITR

306 (SC). The authorities below have not accepted the

explanation of the assessee on the ground that it was only

when the revenue pointed out about wrong claim of

deduction u/s 10B of the Act. The assessee offered it for

[ITA 708/Ind/2017] [M/s. Viscus Infotech Limited, Indore] taxation. It is not disputed that the deduction was

withdrawn by an amendment in law w.e.f. 1.4.2008. Under

these facts, more particularly that assessee has been

allowed deduction in earlier years, we find force into the

contention of the assessee that due to bonafide mistake,

claim was made. Therefore, respectfully following the

judgement of the Hon'ble apex court rendered in the case of

Price Waterhouse Coopers Pvt. Ltd. Vs. CIT (supra), we

direct the A.O. to delete this penalty.

Order was pronounced in the open court on 02 .01.2019.

Sd/- Sd/- (MANISH BORAD) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIALMEMBER

Indore; �दनांक Dated : 02/01/2019 VG/SPS

[ITA 708/Ind/2017] [M/s. Viscus Infotech Limited, Indore] Copy to: Assessee/AO/Pr. CIT/ CIT (A)/ITAT (DR)/Guard file.

By order

Assistant Registrar, Indore