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2015 (11) TMI 916 - ITAT DELHIPenalty levied under section 271(1)(c) - disallowance under section 14A - CIT(A) deleted penalty - Held that:- Admittedly the assessee on its own had disallowed a sum of ₹ 2,43,670 under section 14A but the Assessing Officer computed the disallowance as per rule 8D at ₹ 35,71,608. The provision of rule 8D comes into play only when the Assessing Officer records a finding that having regard to the accounts of the assessee he is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to income, which does not form part of the total income under this Act. There are decisions as per which unless the necessary satisfaction is recorded by the Assessing Officer rule 8D cannot be invoked. Therefore, once the assessee has advanced its claim, the Assessing Officer may reject the same but that does not lead to the conclusion that the claim advanced by the assessee was a false claim. The Assessing Officer in the assessment order or in the penalty order nowhere states that the assessee's claim was false and he has invoked rule 8D for computing the disallowance under section 14A. Therefore, this was merely a difference of opinion between the assessee and the Department on the computation of disallowance under section 14A. The decision of the hon'ble Supreme Court in the case of Reliance Petroproducts Pvt. Ltd. (2010 (3) TMI 80 - SUPREME COURT) is squarely applicable to the facts of the case, wherein it has been held that where there is no finding that any details supplied by the assessee in its return are found to be incorrect or erroneous or false, there is no question of inviting penalty under section 271(1)(c). Mere making of a claim, which is not sustainable in law by itself will not amount to furnishing of inaccurate particulars regarding the income of the assessee. Also see Union of India v. Dharamendra Textile Processors [2008 (9) TMI 52 - SUPREME COURT ] - Decided in favour of assessee.
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