Case Law Details
Brief of the Case
ITAT Mumbai held In the case of Mangalam Drugs & Organics Ltd. vs. DCIT that it is clear that the penalty has been levied, on all the additions/disallowances, in a ‘whole sole’ manner. The AO has not given his findings, for levying the penalty, for each issue separately, with respect to the satisfaction of the AO for each of the issue respectively, nor has he given a finding for each issue separately as to whether there was a concealment of income or furnishing of inaccurate particulars of income. Further, the penalty is not automatic and also the Assessee cannot be fastened with the liability of penalty without there being a clear or specific charge. Fixing a charge in a vague and casual manner is not permitted under the law. Fixing the twin charges is also not permitted under the law. In the present case, the penalty has been levied in a highly automatic, mechanised and casual manner. This kind of approach gives rise to avoidable hardships to the taxpayers and should be avoided. Hence penalty on the disallowance of deduction u/s 80HHC was not justified and therefore, same is deleted.
Facts of the Case
This appeal is regarding levy of penalty on the disallowance of Rs.3, 44,238/- being the amount of disallowance of deduction u/s 80 HHC in the quantum appeal. The assessee did not press this ground before the ITAT and it was dismissed by the ITAT without giving any decision of any merits of disallowance.
Held by ITAT
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