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2013 (5) TMI 716 - AT - Income TaxPenalty u/s. 271(1)(c) - CIT(A) deleted the penalty - AO was of the opinion that assessee had furnished inaccurate particulars of income - Held that:- In this case return of income was filed in November, 1997 and claim about the overriding commission was made by the assessee, though the agreement for paying the same had already lapsed. Original agreements for making payments for overriding commissions were up to the period of 31.03.1995 only and after last date of that financial year same were not renewed. Both the parties had not rendered any services to the assessee during the year under consideration, even then assessee - company claimed that an expenditure amounting to Rs.62.04 Lakhs was paid to them. Not only it was claimed before the AO, but the issue was agitated up to the level of the Tribunal by the assessee. There is no doubt that assessee wanted that claim made by it should be allowed, even though proof of rendering of services by NCL and GTSL or existence of agreements was lacking. Clearly, a false claim was not only made by the assessee, but it was agitated before the highest fact finding authority Assessee knew that there was no agreement for payment of commission for the year under consideration with both the companies and that the claim made was not true, even then it tried to convince both the appellate authorities that claim made by it was genuine. Therefore, it can safely be held that the claim made by the assessee was not only wrong, but also false and it was persisted with for a very long time. The assessee had not furnished any satisfactory explanation as to why a prima facie inadmissible claim was made in the return. In favour of revenue.
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