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2011 (5) TMI 851 - AT - Income TaxPenalty u/s 271(1)(c) - Penalty was imposed in respect of disallowance of deduction claimed u/s 43B and on account of provision for doubtful debts, debited in the books of account - As per assessee penalty was not justified. HELD THAT:- Regarding the penalty imposed on provision for doubtful debt, as submitted by assessee that disallowance is on the basis of the Explanation inserted in section 36(1)(vii). Explanation was inserted by the Finance Act 2001 with retrospective effect from April 1, 1989. Since the return of income was filed by the assessee on November 30, 1998, at the time of filing of return of income, the claim of the assessee was justified and hence, for further disallowance as per the amended provisions, penalty is not justified. The ld DR supported the orders of authorities below on this aspect of the matter. Regarding deduction u/s 43B, We have noted that none of the decisions cited by DR for the Revenue is of any help to the Revenue in the present case. Full particulars were disclosed by the assessee in the computation of income enclosed with the return of income. In our considered opinion, the stand taken by the assessee at the time of filing of return of income was a possible and plausible view and therefore, the penalty is not justified. The judgment of the hon'ble apex court rendered in the case of COMMISSIONER OF INCOME-TAX VERSUS RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT], held that "mere making of a claim by itself will not amount to furnishing of inaccurate particulars regarding the income of the assessee and such a claim made in the return of income cannot amount to concealment of income or furnishing of inaccurate particulars of income unless it is found that any details supplied by the assessee in this return were found to be incorrect or erroneous or false." In our considered opinion, this judgment of the hon'ble apex court supports the case of the assessee in the present case and respectfully following this judgment, we delete the penalty - Decision in favour of Assessee
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