ITO 9(1)(4), MUMBAI vs. GLEG ENGINEERS P. LTD, MUMBAI

M/s. Gleg Engineers Pvt. Ltd. 2 2. Briefly stated the facts are, assessee a company filed its return of income for the respective assessment years claiming deduction under section 80IA(4) of the Act. Assessments in case of the assessee for both the assessment years were completed rejecting assessee’s claim of deduction under section 80IA(4). Against the assessment order so passed, assessee preferred appeals before the learned Commissioner (Appeals) and being unsuccessful, carried further in appeal before the Tribunal. The Tribunal, for the assessment year 2004–05, restored the matter back to the file of the Assessing Officer to verify as to whether the assessee has fulfilled the conditions of section 80IA(4). As far as assessment year 2007–08 is concerned, the Assessing Officer disallowed assessee’s claim of deduction under section 80IA(4) on interest income by treating it as income from other sources. The learned Commissioner (Appeals) also confirmed the disallowance of assessee’s claim of deduction under section 80IA(4). As far as assessment year 2003–04 is concerned, the Assessing Officer, in pursuance to the direction of the Tribunal, again re–examined assessee’s claim of deduction under section 80IA(4), but ultimately rejected the claim while completing the assessment. The learned Commissioner (Appeals) also confirmed the disallowance. On the basis of disallowance of assessee’s claim of deduction under section 80IA(3), Assessing Officer initiated proceedings for imposition of penalty under M/s. Gleg Engineers Pvt. Ltd. 3 section 271(1)(c) for both the assessment year and ultimately, proceeded to impose penalty alleging furnishing of inaccurate particulars of income. Being aggrieved of the penalty orders passed for the assessment years under dispute, the assessee preferred appeals before the learned Commissioner (Appeals). The learned Commissioner (Appeals), however, confirmed imposition of penalty for both the assessment years. Being aggrieved, the assessee is in appeal before us.

M/s. Gleg Engineers Pvt. Ltd. 4 4. Learned Departmental Representative has not controverted the fact that the issue in quantum proceedings has been restored back to the file of the Assessing Officer.

M/s. Gleg Engineers Pvt. Ltd. 5 However, we make it clear that it will be open for the Assessing Officer to initiate proceedings for imposition of penalty under section 271(1)(c), if warranted, after completion of assessment in pursuance to direction of the Tribunal.