COMMISSIONER OF INCOME TAX Vs. EICON INTERNATIONAL (P) LTD.
LAWS(DLH)-2007-9-385
HIGH COURT OF DELHI
Decided on September 15,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Eicon International (P) Ltd. Respondents

JUDGEMENT

- (1.) 1053/Del/2006 relevant for the asst. yr. 2001 -2002.
(2.) The assessee is engaged in the business of export of engineering goods and installation and commissioning of equipment at the site of the customer and providing other services as per the requirement of the customers. The assessee had filed a return claiming a deduction under s. 80HHC of the IT Act, 1961 ('the Act'). The assessee thereafter filed a revised return in which he made a claim of deduction under s. 80HHB of the Act.
(3.) The AO took the view on the revised claim of the assessee that it was not bona fide and the assessee has not been able to furnish requisite evidence regarding various conditions that are required to be met for allowing a deduction under s. 80HHB of the Act. Therefore, the AO took no cognizance of the revised claim. There were certain other deduction claimed by the assessee and these were also disallowed. The AO concluded the assessment order with the following words : "Assessed. Tax is hereby charged. Interest under s. 234B/C/D is hereby charged. Issue ITNS 150, Demand Notice and Challan. Penalty proceeding under s. 271(1)(c) have been initiated." the assessee. Feeling aggrieved, the assessee preferred an appeal before the Commissioner of Income -tax (A) [CIT(A)]. penalty. The CIT(A) specifically held that it could not be said that the appellant had concealed income or furnished inaccurate particulars of its income. The penalty was, therefore, cancelled. The Revenue then preferred an appeal before the Tribunal which also took the same view. In addition, the Tribunal was of the opinion that in view of the decision of this Court in CIT vs. Ram Commercial Enterprises Ltd. (2001) 167 CTR (Del) 321 : (2000) 246 ITR 568 (Del), the AO had not recorded his satisfaction for initiating penalty proceedings under s. 271(1)(c) of the Act.;


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