CIT Vs. OSCAR UDYOG LTD.

JUDGEMENT

(1.) THE revenue has preferred this appeal challenging the order passed by the Tribunal which has set aside the penalty imposed by the Assessing Authority as well as the Appellate Authority on the ground that the assessee has furnished an inaccurate particulars.

(2.) THE facts are not in dispute. The assessee is the company engaged in the business of construction of buildings. For the relevant assessment year, the assessee declared an income of Rs. 3,27,98,130 and claimed deduction of Rs. 3,27,50,222 under section 80 -IB(10) of the Income Tax Act, 1961. A survey was conducted under section 133A of the Act on 21.2.2007. According to the revenue, the assessee had violated the norms for claiming deduction under section 80 -IB(10) of the Act. When the assessee was confronted with the same. The assessee withdrew the deduction claimed, paid the tax as well as the interest. It is thereafter, penalty proceedings were initiated on the ground that but for the survey, the same could not have been detected and therefore penalty was imposed. The assessee preferred an appeal. The appellate authority dismissed the appeal confirming the imposition of penalty. It is against the said order the assessee preferred an appeal to the Tribunal. The Tribunal held that the assessee was entitled to claim deduction. Merely because the assessee withdrew the deduction, conceded to the demand of the department and paid tax and interest, as there is no mala fide intention, the assessee cannot be imposed penalty and as such the order imposing penalty was set aside. Aggrieved by the said order, the revenue is before this Court.

(3.) NO merits. The appeal is dismissed.