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Income Tax Appellate Tribunal, DELHI BENCHES : D : NEW DELHI
Before: SHRI R.S. SYAL & SHRI C.M. GARG
ORDER PER R.S. SYAL, VP:
This appeal by the Revenue arises out of the order passed by the CIT(A) on 29.04.2015 deleting the penalty of Rs.23,83,630/- imposed by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter called `the Act’) in relation to the assessment year 2010-11.
Briefly stated, the facts of the case are that the assessee claimed deduction u/s 35(2AB) for a sum of Rs.16,83,48,337/-.
During the course of assessment proceedings, it was observed that the DSIR had approved lesser amount and, accordingly, the amount of deduction was reduced by Rs.77,14,000/-. The assessee did not prefer any appeal against the addition made in quantum proceedings. Thereafter, the Assessing Officer imposed penalty u/s 271(1)(c) of the Act in relation to this addition which came to be deleted in the first appeal.
We have heard the parties and perused the relevant material on record. It is observed that the penalty was levied only with reference to the amount of deduction claimed by the assessee u/s 35(2AB). Such reduction in the amount of deduction was effected due to certain expenses incurred by the assessee, which were not approved by the DSIR. It is observed that such expenses were genuinely incurred by the assessee during the previous year relevant to assessment year under consideration and the return was filed on 27.09.2010. The disapproval by the DSIR for such expenses came vide order dated 17th June, 2011. Thus, it shows that the expenses were genuinely incurred by the assessee and the amount of deduction u/s 35(2AB) got lowered because of non-approval of certain expenses and, that too, after the filing of the return by the assessee. Under these circumstances, it cannot be inferred by any standard that the assessee concealed its income or furnished inaccurate particulars of its income. We, therefore, countenance the view taken by the ld. CIT(A).
In the result, the appeal of the Revenue stands dismissed.
Order Pronounced in the open Court on 11.12.2017.