COMMISSIONER OF INCOME TAX Vs. JAKSON LTD

JUDGEMENT

(1.) These appeals by the revenue arise out of the common order dated 22.06.2012 passed by the Income Tax Appellant Tribunal in ITA No.4076/Del/2011 and 4073/Del/2011 pertaining to the assessment years 2003-04 and 2004-05.

(2.) In both these matters the question is with regard to penalties under section 271(1)(c) of the Income Tax Act, 1961. In respect of the assessment year 2003-04 the penalty imposed by the assessing officer was Rs. 15.4 lakhs whereas in respect of the assessment year 2004-05 the penalty amount was '9.30 lakhs. In both the cases the penalty was imposed because of the reason that the deduction claimed under section 80-IB by the respondent-assessee was ultimately allowed at a lower level. We may take the case of the assessment year 2003-04. Initially, the assessee had claimed deduction under section 80-IB of Rs. 2,52,41,632/-. However, subsequently the respondent-assessee filed a revised return in which he claimed an enhanced deduction under section 80-IB of Rs. 2,67,48,176/-. In the penalty proceedings the computation with regard to the deduction under section 80-IB has ultimately been taken at Rs. 2,52,41,632/-, which is the same as the amount claimed by the respondent-assessee at the time of filing of the original return. The penalty has been levied on the respondent-assessee because the claim under section 80-IB in the revised return has not been accepted and has been reduced to Rs. 2,52,41,632/-. Similar facts have arisen in respect of the assessment year 2004-05.

(3.) The Commissioner of Income Tax(Appeals) had deleted the said penalty and the revenue was in appeal before the Tribunal.