Income Tax Officer New Delhi Vs. Poly Medicure Limited

Parties Involved

Facts Summary

The assessee, Poly Medicure Limited, is a company engaged in manufacturing medical devices with a recognized research facility by the Department of Scientific and Industrial Research (DSIR). The company filed its return of income electronically on 24-11-2017, declaring a total taxable income which was later revised. The assessee claimed a deduction under section 35(2AB) of the Act. The case was selected for complete scrutiny, and the Assessing Officer disallowed a certain amount of expenditure claimed under section 35(2AB). The Assessing Officer imposed a penalty under section 270A for misreporting of income. The assessee appealed this decision before the National Faceless Appeal Centre/ Commissioner of Income Tax (Appeals) (NFAC), which allowed the appeal and deleted the penalty. The revenue then appealed to the tribunal.…

Legal Issues

• 1. Whether the Ld.CIT(A) has erred in deleting the penalty of Rs. 93,80,160/- levied by the AO under section 270A of the Act.
• 2. Whether the Ld.CIT(A) has ignored the fact that in case the assessee's case was not selected for scrutiny, the excess expenditure claimed by it remains unverified and assessee has not paid the due taxes.
• 3. Whether the Ld.CIT(A) has not considered the fact that the assessee's case is covered under sub-section 9 of section 270A of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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