- (1.) This appeal has been filed by the appellant-revenue under Section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 23.12.2014, Annexure-4 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, 'B', Chandigarh (in short, "the Tribunal") in ITA No.925/CHD/2013 for the assessment year 2009-10, claiming following substantial questions of law:- i) Whether on the facts and in the circumstances of the case, the ITAT is right in law in cancelling the penalty under section 271(1)(c) even though the assessee has claimed deduction under section 80IC by not following the decision dated 17.8.2006 of Hon'ble Jurisdictional High court in the case of Liberty India 293 ITR 520 (P&H) and the assessee accepts that the decision of Liberty India dated 17.8.2006 is applicable in his case? ii) Whether on the facts and in the circumstances of the case, ITAT is right in law in giving a finding that the assessee can claim deduction till the decision of Hon'ble Supreme Court even though there is a decision of jurisdictional High Court in favour of the revenue? iii) Whether on the facts and in the circumstances of the case, the ITAT has not appreciated the Full Bench decision of Hon'ble Punjab and Haryana High Court in the case of Smt. Aruna Luthra 252 ITR 76 wherein it was held that non following of jurisdictional High Court decision amounts to mistake apparent from record? iv) Whether on the facts and in the circumstances of the case, the ITAT is right in law in not appreciating the decision of jurisdictional High Court in the case of CIT vs. Ram Lal Baba Lal, 234 ITR 776 (P&H) and also the case of CIT vs. Guru Lal Bal Chand, 1978 111 ITR 134 wherein it was held that the authorities by reference to the opinion of another High Court cannot say that the point is debatable? v) Whether on the facts and in the circumstances of the case, the ITAT is right in law in not considering detailed findings given by CIT(A) in his order dated 1.8.2013 in paras 3.14 to 3.26?"
(2.) A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The respondent assessee is a firm which is engaged in the business of manufacturing of biscuits/cookies and other bakery products. It filed its return of income on 30.9.2009 at total income of ' nil for the assessment year 2009-10. The case was selected for scrutiny and notices under various sections of the Act were issued to the assessee. The Assessing Officer completed assessment proceedings under Section 143(3) of the Act vide order dated 29.11.2011, Annexure 1 and disallowed deduction under Section 80IC of the Act amounting to Rs. 1,50,09,481/-. Penalty proceedings under Section 271(1)(c) of the Act were also initiated for filing inaccurate particulars of income. Order imposing penalty of Rs. 51,01,720/- was passed on 29.5.2012, Annexure 2. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 1.8.2013, Annexure 3, the CIT (A) dismissed the appeal. Not satisfied with the order, the assessee filed appeal before the Tribunal. Vide order dated 23.12.2014, Annexure 4, the Tribunal allowed the appeal and set aside the order passed by the CIT(A) by deleting the penalty. Hence the instant appeal by the revenue.
(3.) We have heard learned counsel for the parties.;