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2022 (3) TMI 773 - ITAT DELHIPenalty u/s 271(1)(c) - disallowance of penalty paid, disallowance of payment of sales tax and the disallowance pertaining to miscellaneous balance written of - whether penalty proceedings are initiated for concealment of income or furnishing of inaccurate particulars - HELD THAT:- In Reliance Petro Products Ltd. [2010 (3) TMI 80 - SUPREME COURT] emphasized that, mere making of a claim of deduction which was not allowable by itself would not amount to furnishing inaccurate particulars of income. In fact, every legal disallowance under the provisions of the Act could not lead to the conclusion that, there was furnishing of inaccurate particulars of income on the part of the assessee. In present case it is seen from the order of the AO and CIT(A) that, there is no specific finding in so far as ‘concealment of income’ and ‘furnishing of incorrect particulars by the assessee’ in the true meaning of Sec. 271(1)(c) of the Act. On the other hand, in our opinion, debiting an amount of ₹ 10,01,990/- on account of Sundry balance written off in profit and loss account, which was claimed to be in the nature of discount allowed to the customer of the assessee, since the said amount was not recovered and pending for loss and which ultimately disallowed by the AO, cannot attract “concealment of income” and “furnishing of inaccurate particulars of income”. The ratio laid down by the Hon’ble Supreme Court in the case of CIT vs. Reliance Petro products Ltd (supra) is squarely applicable in favor of the Assessee. - Decided in favour of assessee.
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