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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI KUL BHARAT & SHRI MANISH BORAD
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).
We have heard the rival submissions, perused the
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withdrawn by the Finance Act, 2007 w.e.f. 1.4.2008.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.
In the result, appeal filed by the assessee is allowed.
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