Asst. CIT vs Thermax Ltd
The assessee company is engaged in the business of manufacturing and selling of steam boilers, heat exchangers among others. The assessee filed revised return of income declaring total income of Rs.3,69,13,43,639/-. The Assessing Officer passed assessment order determining total income at Rs.4,36,27,51,620/-. Thereafter, the Assessing Officer passed the penalty order u/s.271(1)(c) levying penalty of Rs.10,55,40,630/-.The legal principle follows once the quantum addition has been deleted, penalty u/s.271(1)(c) of the Act has no legs to stand. In respect of prior period expenses, in the quantum appeal of the assessee, the Pune Bench of the Tribunal dismissed this ground of the assessee and sustained the addition. The Ld. DR could not place on record any evidences whereby the condition for imposing penalty could be said to have been proved in the case of the assessee.
Relying on the Hon‟ble Apex Court in the case of CIT vs. Reliance Petro Products Pvt. Ltd., in the separate proceedings of penalty u/s.271(1)(c) of the Act when the Revenue has accepted the return of the assessee and has not brought on record any material to show that whatever stated in the return is incorrect or inaccurate, in such scenario, there is no question of imposing penalty under the said provision. In the result, appeal of the Revenue is dismissed.