Penalty levied u/s 27(1)(c) on account of disallowance of deduction u/s 35 of the Income-tax Act, 1961

This judgement concerns two appeals filed by the Revenue against orders that deleted penalties levied under Section 271(1)(c) of the Income Tax Act, 1961. The penalties were initially imposed due to the disallowance of deductions claimed under Section 35. The Income Tax Appellate Tribunal found the facts and issues in both appeals to be identical and ultimately dismissed both appeals filed by the Revenue.

N THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, PUNE (Through Virtual Court) BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER

ITA No. 1674/PUN/2019

Assessment Year : 2014-15

The Assistant Commissioner of Income Tax, Circle-1, Aurangabad.

Appellant

vs

M/s. BG LI In Electricals Ltd. M-137, MIDC, Waluj, Aurangabad-431 136

PAN : AABCB2400M

Respondent

ITA No. 1676/PUN/2019

Assessment Year : 2014-15

The Assistant Commissioner of Income Tax, Circle-1, Aurangabad

Appellant

vs

M/s. BMR HVAC Ltd. Gut No.65, Vill. Chitegaon, Aurangabad-431 105.

PAN : AABCH9456K

Respondent

Assessee by : Shri Sharad Shah

Revenue by : Shri S.P Walimbe

Date of Hearing : 27.07.2021

Date of Pronouncement : 28.07.2021

ORDER

These two appeals preferred by the Revenue emanates from the different orders of the Ld. CIT(Appeals)-1, Aurangabad dated 09.08.2019 for the assessment year 2014-15

2. The solitary grievance of the Revenue in both these appeals is with regard to the deletion of penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟) by the Ld. CIT(Appeals).

3. ITA No.1674/PUN/2019 A.Y. 2014-15

4. The facts concerning levy of penalty, as per the lead case are that the assessee company is engaged in the business of manufacturing, assembling, processing, importing, exporting, fabricating and trading in various kinds of electrical and electronic parts, components, instruments required for automobile and engineering industry. The assessee had filed its return of income for the assessment year 2014-15 on 13th October, 2014 declaring total income of Rs.1,34,42,280/-.

5. Thereafter, the case of the assesse company was selected under limited scrutiny (CASS) and accordingly, scrutiny proceedings were initiated. During that time vide Notification No.82/2016 dated 15th September, 2016, the Central Government rescinded the approval earlier granted to SHGPH. The said notification reads that it should be deemed that the said notification had not been issued for any tax benefits under the Income Tax Act or any other law for the time being in force.

6. Both the parties herein submitted before the Bench that the facts and circumstances and issues involved in ITA No.1676/PUN/2019 are absolutely identical and similar to ITA No.1674/PUN/2019. Therefore, our decision rendered in ITA No.1674/PUN/2019 shall mutatis-mutandis apply in ITA No.1676/PUN/2019.

7. In the result, appeal of the Revenue in ITA No.1676/PUN/2019 for the assessment year 2014-15 is dismissed.

8.In the combined result, both the appeals of the Revenue are dismissed.

Order pronounced on 28th day of July, 2021.
 

Please find attached the enclosed file for the full judgement