Commissioner of Income Tax vs Celetronix Power India P. Ltd.

Whether the income tax Appellate Tribunal was justified in deleting the penalty levied u/s 271(1)(c) of the income tax Act, 1961, is the question raised in this appeal. The finding of fact recorded by the income tax Appellate Tribunal is that the assessee had disclosed all material facts relevant for the purpose of assessment and there was no concealment. In the present case, the assessee had claimed deduction u/s 80HHC by relying upon the judgment of this court in the case of Commissioner of Income Tax Vs. Shirke Construction Equipments Ltd., , which was the judgment prevailing on the date of filing of the return. Subsequent to the filing of the return, the aforesaid decision of this court in the case of Commissioner of Income Tax Vs. Shirke Construction Equipments Ltd., has been reversed by the apex court in the case of IPCA Laboratory Ltd. Vs. Deputy Commissioner of Income Tax, Mumbai, and accordingly disallowance has been made and penalty has been imposed. The income tax Appellate Tribunal has deleted the penalty on the ground that the additions made on account of disallowance was neither due to the failure on the part of the assessee to furnish accurate particulars nor on account of furnishing inaccurate particulars. We see no infirmity in the order of the income tax Appellate Tribunal.

The appeal is accordingly dismissed with no order as to costs.