Penalty applies if assessee knowingly made a false claim of deduction U/s. 80IB

Briefly, the facts necessary for adjudication of the controversy involved, as narrated in the appeal, may be noticed. The respondent- assessee is a company engaged in manufacture of hosiery goods at Ludhiana. A survey under Section 133A of the Act was carried out in the business premises of the assessee. It surrendered undisclosed income amounting to 1.20 crores under different heads. The said income was included in the profit and loss account and offered to tax. However, the assessee claimed deduction on the entire income under Section 80IB of the Act which included the aforesaid surrendered ...