Decided on September 24,2014

Chambal Fertilisers And Chemicals Ltd. Appellant
The Acit Respondents


R.P.Tolani, Member (J) - (1.) THESE are the cross appeals against the order of the ld. CIT(A), Kota dated 28 -10 -2011 for the assessment year 2002 -03 allowing part relief in penalty imposed u/s. 271(1)(c) of the Act wherein both the parties are aggrieved as under: - (i) The assessee for retention of penalty at Rs. 3,93,37,909/ - from Rs. 8,64,76,559/ - u/s. 271(1)(c) of the Act. (ii) The Revenue has raised following grounds in its appeal. "On the facts and in the circumstances of the case, the ld. CIT(A), Kota has erred in: - (i) deleting penalty u/s. 271(1)(d) of I.T. Act, 1961 on the addition of Rs. 37.38 crores on account of downward impact of retention price subsidy. (ii) deleting penalty u/s. 271(1)(c) of I.T. Act, 1961 on the addition of Rs. 11.62 lacs on account of consultant's fee paid for drafting of shareholders agreement. (iii) holding that penalty u/s. 271(1)(c) is leviable in respect of addition made on account of provision for deferred taxation to the extent of Rs. 4215.03 lacs only as against addition of Rs. 6624.20 lacs made by AO and confirmed by Hon'ble ITAT, Jaipur Bench, Jaipur "
(2.) 0 The brief facts of the case are that the assessee is a Public Limited Company which is engaged in the manufacture and sale of Fertilizers, Textile, Software, Food Processing and also trading of DAP and allied products at its industrial units at Gadepan (Distt. Kota), Baddi, Chennai & Sonepat. The assessee filed its return of income on 29 -10 -2002 which was processed u/s. 143(1) of the Act on 10 -02 -2003. Thereafter the assessee filed a revised return of income u/s. 139(5) on 30 -03 -2004 along with statement of reasons necessitating the revised return being depreciation loss of Rs. 4,01,43,383/ -. Minimum Alternate Tax u/s. 115J of the Act was worked out at Rs. 6,73,10,934/ - i.e. 7.65% of book profit of Rs. 87,98,81,489/ -. N the basis of the revised returN, the AO, Kota made various disallowaNces/additioNs aNd completed the assessmeNt u/s. 143(3) vide his order dated 29 -03 -2005. Aggrieved assessee preferred first appeal oN merits of additioNs.
(3.) 0 Ld. CIT(A) passed order on 14 -12 -2006 partly allowing the assessee's appeal. After giving the appeal effect, the income was determined at Rs. 33,62,71,496/ - and book profit was worked out at Rs. 2,01,06,05,781/ - resulting in tax liability of Rs. 15,38,1,343/ -, as against the liability calculated by the assessee by way of revised return at Rs. 6,73,10,934/ -.;

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