Case Law Details
DCIT Vs Maharashtra State Power Generation Co. Ltd. (ITAT Mumbai)
When the assessee had came forth with the full disclosure of all the particulars in respect of its aforesaid claim of expense, which as observed by us hereinabove had not been proved to be incorrect by the lower authorities, therefore, merely for the reason that the addition/disallowance on the said count had not been assailed by the assessee in its quantum appeal before the Tribunal would not justify imposition of penalty under Sec. 271(1)(c) on the assessee on the said standalone basis.
Our aforesaid view is fortified from the fact that the penalty proceedings are separate and distinct from the assessment proceedings, and merely for the reason that an addition/disallowance had been made in the hands of the assessee would not justify imposition of penalty u/s 271(1)(c).
We have given a thoughtful consideration to the observations of the CIT(A) that as the assessee had raised a bonafide claim of expense as regards the coal cost freight issue-Bhusaval amounting to Rs.16,31,85,000/- in its revised return of income, therefore, no penalty under Sec.271(1)(c) could have been levied on it, and in the backdrop of our aforesaid deliberations find ourselves to be in agreement with the view taken by him. Accordingly, finding no infirmity in the order of the CIT(A) wherein he had rightly vacated the penalty imposed by the A.O under Sec.271(1)(c), we uphold the same.
FULL TEXT OF THE ITAT JUDGEMENT
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