TMI Blog2014 (4) TMI 628X X X X Extracts X X X X X X X X Extracts X X X X ..... erely because of subsequent events, the assessee could not produce bills/vouchers to substantiate its claim of expenditure cannot ipso facto lead to the conclusion that the assessee has filed inaccurate particulars - the decision in Commissioner of Income-tax Versus M/s. Universal Medicare Pvt. Ltd. [2014 (1) TMI 1261 - ITAT MUMBAI ] followed – also in, COMMISSIONER OF INCOME-TAX Versus RELIANCE PETROPRODUCTS PVT. LTD. [ 2010 (3) TMI 80 - SUPREME COURT] - There is a distinction between “wrong claim” and “false claim” - Considering the entire factual matrix, it cannot be said that assessee had made false claim – Decided against Revenue. - I.T.A. Nos.5259 & 5260/Mum2011 - - - Dated:- 28-2-2014 - Shri D. Manmohan, VP And Shri N. K. Billaiy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial audits and additions were made on special auditor s report and the assessee could not substantiate its claim by proper evidences and documents. In the opinion of the AO, had the return not come under scrutiny, these facts would never been revealed. Drawing support from the decision of the Hon ble Supreme Court in the case of Union of India Vs Dharmendra Textile Processors and Ors 306 ITR 277 the AO went on to levy penalty being 100% of tax sought to be evaded at Rs. 14,25,593/-. 5. The assessee carried the matter before the Ld. CIT(A) and reiterated what has been submitted during the assessment proceedings. It was claimed that during the assessment proceedings itself one of the Directors informed the Revenue that one Mr. S.G. Teredes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directions of his processor in quantum proceedings, the AO did verify the bills and vouchers submitted by the assessee and on that very basis the Ld. CIT(A) gave part relief from the disallowances made by the AO. 5.1. The Ld. CIT(A) was convinced that the assessee was making efforts in collecting the evidences and was successful in its efforts though finally it could not locate some of the bills/vouchers. The Ld. CIT(A) also observed that the total defalcation in the group companies was at Rs. 19.04 crores and the same has been accepted in the case of group companies in A.Y. 2006-07 and subsequent assessment years. In the case of M/s. Universal Medicare Ltd. for A.Y. 2006-07 out of the total loss of Rs. 19.04 crores claim of loss at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) deleted the penalty levied. 6. Aggrieved by this, Revenue is before us. The Ld. Departmental Representative strongly relied upon the assessment order and the order of the levy of penalty u/s. 271(1)(c) of the Act. 7. Per contra, the Ld. Counsel for the assessee reiterated what has been submitted before the lower authorities. 8. We have carefully perused the orders of the lower authorities. We have also perused the assessment order wherein the roots for the levy of penalty lie. It is an undisputed fact that a fraud/defalcation has been committed by one of the employees of the assessee which came to the notice of the assessee in 2005. It is also an undisputed fact that the return of income alongwith Tax audit report were filed mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of the Tribunal in group cases and also after considering the entire factual matrix in the light of the decision of the Hon ble Supreme Court in the case of Reliance Petro Products (supra), we have no hesitation in confirming the orders of the Ld. CIT(A). Appeals filed by the Revenue are accordingly dismissed. 9. Before closing, the Revenue has relied upon the decision of the Hon ble Delhi High Court in the case of Zoom Communication Pvt. Ltde. 327 ITR 510. The facts are clearly distinguishable and are more supported by the decision of the Hon ble Supreme Court in the case of Reliance Petro Products. 10. In the result, both the appeals filed by the Revenue are dismissed. Order pronounced in the open court on 28/02/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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