Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 1490 - ITAT DELHIPenalty u/s 271(1)(c) - Disallowance of a sum being power purchase price which was not debited by the assessee in its books of account as expenditure but claimed as deduction in the computation of the total income - Held that:- Hon’ble Bombay High Court in CIT Vs. Nayan Builders and Developers [2014 (7) TMI 1150 - BOMBAY HIGH COURT] has also held that where High Court admitted substantial question of law in respect of which penalty was levied the impugned order of penalty was to be deleted. Therefore, respectfully following the decisions of Hon’ble High Court we hold that when the issue is admitted by Hon’ble High Court as substantial question of law in the case of the assessee on disallowance of ₹ 261406249/- for power purchase price difference, no penalty u/s 271(1)(c) can be levied. We are of the view that consistent approach should have been taken by revenue in this case for this year too. Hon’ble Supreme Court in case of CIT Vs. Reliance Petro Products Ltd [2010 (3) TMI 80 - SUPREME COURT]] has stated that a mere making of the claim which is not sustainable in law by itself does not amount to furnishing of inaccurate particulars regarding the income of the assessee and does not invite penalty u/s 271(1)(c) - In the present case also the assessee has disclosed full facts about the claim made in the computation of total income filed. Further, detailed explanation about the power purchase price was given in notes to accounts in Schedule 16 of its annual account. Therefore, it cannot be said that the assessee has furnished inaccurate particulars of its claim. It also cannot be said that the claim of the assessee is not a bona fied claim because of the past history of such claim being allowed to the assessee by the tribunal. No infirmity in the order of the CIT(A) in deleting the penalty of ₹ 8.80 crores u/s 271(1)(c) of the Act.- Decided in favour of assessee.
|