TMI Blog2022 (3) TMI 773X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 . Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of miscellaneous balances written off. That the appellant craves leave to Add to and/or Amend, modify or withdraw the grounds outlined above before or at the time of hearing of the appeal. 3. At the time of hearing, no one appeared on behalf of the assessee, even no application for seeking adjournment of the appeal has been filed. Despite giving several notices, the assessee and his representative have failed to appear before the Tribunal. Therefore, we are constrained to decide the appeal on the basis of materials available on record after hearing the Ld. Sr.DR. 4. The brief facts of the case are that, the assessee Company is engaged in the business of manufacturing of tobacco product. The assessee filed its r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, the assessee has preferred an appeal before CIT(A)-4. The CIT(A) vide order dated 01/05/2018 deleted penalty levied for disallowance of penalty amount of ₹ 35,169/- and payment of sales tax amounting to ₹ 5,74,769/-, but sustained penalty levied pertaining to miscellaneous balance written off amounting to ₹ 10,01,990/-. 8. Aggrieved by the order dated 01/05/2018 passed by CIT(A), the assessee has preferred the present appeal on grounds narrated above. 9. On going through the records, we found that, the Ld. AO has passed penalty order u/s 271(1)(c) of the Act under three counts i.e. disallowance of penalty paid of ₹ 35,169/-, disallowance of payment of sales tax amounting to ₹ 5,74 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee must have furnished inaccurate particulars of his income. The instant case was not the case of concealment of the income. That was not the case of the revenue either. It was an admitted position in the instant case that no information given in the return was found to be incorrect or inaccurate. It was not as if any statement made or any detail supplied was found to be factually incorrect. Hence, at least, prima facie, the assessee could not be held guilty of furnishing inaccurate particulars. The revenue argued that submitting an incorrect claim in law for the expenditure on interest would amount to giving inaccurate particulars of such income. Such cannot be the interpretation of the concerned words. The words are plain an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the falsehood in accounts can take either of the two forms: (\) an item of receipt may be suppressed fraudulently; (iij an item of expenditure may be falsely (or in an exaggerated amount) claimed, and both types attempt to reduce the taxable income and, therefore, both types amount to concealment of particulars of one's income as well as furnishing of inaccurate particulars of income. Such contention could not be accepted as the assessee had furnished all the details of its expenditure as well as income in its return, which details, in themselves, were not found to be inaccurate nor could be viewed as the concealment of income on its part. It was up to the authorities to accept its claim in the return or not. Merely because the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,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. (2010) 322 ITR 158 (SC) (supra) is squarely applicable in favor of the Assessee. 13. For the above said discussion and reasons, we allow the grounds of appeal of the assessee, set aside the order passed by the A.O and CIT(A) in penalty proceedings. 14. In the result, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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