Sandeep Singh Karhail ORDER
Sandeep Singh Karhail, Member (J)
1. The present appeal has been filed by the assessee challenging the impugned order dated 31/07/2023, passed under section 250 of the Income Tax Act, 1961 ("the Act") by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, ["learned CIT(A)"], which in turn arose from the order passed under section 271(1)(c) of the Act, for the assessment year 2011-12.
2. In its appeal, the assessee has raised the following grounds:-
"On facts & circumstances of the case and in law, the NFAC Appeal Centre has erred in upholding levy of penalty u/s.271(1)(c) of the Income Tax Act amounting to Rs. 17,81,066/-. The penalty levied u/s.271(1)(c) of the Income Tax Act may please be cancelled.
The appellant reserves its right to add to, alter, amend, modify or delete any of the grounds taken in this appeal."
3. The only grievance of the assessee is against the levy of penalty under section 271(1)(c) of the Act.
4. The brief facts of the case are that the assessee is a company and is engaged in the business of manufacturing and trading pharmaceutical products. For the year under consideration, the assessee filed its return of income on 30/09/2011 declaring a total income of Rs. 30,54,99,500. The return filed by the assessee was selected for scrutiny and statutory notices under section 143(2) as well as section 142(1) of the Act were issued and served on the assessee. During the assessment proceedings, from the perusal of the profit and loss account, it was observed that the assessee has debited Rs. 51,35,000 towards donation and charity, however, the same has not been added by the assessee in the computation of income. On being pointed out the discrepancy, the assessee vide its submission dated 02/03/2015 submitted the revised computation of income including the amount of donation and charity of Rs. 51,35,000. Further, during the assessment proceedings, it was also noted that the assessee has debited an amount of Rs. 2,26,832 on account of loss on sale of assets, however, the same has not been added to the computation of income by the assessee. In this regard, no reply was furnished by the assessee, accordingly the amount of Rs. 2,26,832 claimed on account of loss on sale of assets was disallowed and added to the total income of the assessee. The Assessing Officer ("AO") vide order dated 20/03/2015 passed under section 143(3) of the Act also made disallowance of Rs. 20 lakh on account of sales promotion expenses, as the assessee could not substantiate the entire expenditure of Rs. 11,31,83,522 claim by it. Accordingly, after making the aforesaid additions, the AO assessed the total income of the assessee at Rs. 31,28,61,332.
5. Meanwhile, the penalty proceedings vide notice dated 20/03/2015 issued under section 274 r/w section 271(1)(c) of the Act were initiated. The Assessing Officer ("AO") vide penalty order dated 30/09/2015, passed under section 271(1)(c) of the Act, levied a penalty of Rs. 17,81,066, on the basis of additions on account of donation and charity, and on account of loss on sale of assets, which were debited to the profit and loss account, however, the same were not been added by the assessee in the computation of income. Vide penalty order ........