No penalty for Deduction reduced on account of interpretative process

Gulshan Polyols Ltd. Vs ACIT (ITAT Delhi) The assessee has inter alia claimed deduction under Section 80IC on certain ‘other income’ which inter alia included profit on sale of asset. The Assessing Officer disallowed the claim of deduction under Section 80IC terming it to be incidental income and thus cannot be said to be ‘derived from’ manufacture or produce of any article or thing. For holding so, the Assessing Officer relied upon the judgment rendered by the Hon’ble Supreme Court in the case of CIT vs. Sterling Foods, 237 ITR 579 (SC) wherein the Court observed that the in...