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2016 (12) TMI 1775 - AT - Income TaxPenalty u/s 271(1)(c) - claim made on account of deduction u/s 80P(2)(a)(i) and denial of provision made for overdue interest - HELD THAT:- In the present case, the assessee neither concealed the income nor filed inaccurate particulars. The assessee has only made a claim. According to the assessee, it is eligible for deduction under section 80P(2)(a)(i) and filed return of income by disclosing all the facts. AO denied the claim, which was confirmed by the Commissioner of Income Tax (Appeals). This is not automatically amounting to neither concealment of income nor filing of inaccurate particulars. Hon'ble Supreme Court in the case of Reliance Petroproducts Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] held that a mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such a claim made in the return cannot amount to furnishing inaccurate particulars. Provision of overdue interest - It is not the case of the Commissioner of Income Tax (Appeals) that the assessee neither concealed the income nor filed inaccurate particulars. The case of the assessee is that he made a provision on sticky loans by following the RBI guidelines by filing all the details before the Assessing Officer. Once, the assessee filed all the details in his return of income and made a provision, if the Assessing Officer has denied the provision made by the assessee, it cannot be said that the provision made by the assessee is neither concealment nor filing inaccurate particulars of income. It is only a legal claim made by the assessee. This aspect has already been considered while dealing with section 80P(2)(a)(i) (supra) and by following the judgment of the Hon'ble Supreme Court, the penalty levied by the Assessing Officer is to be cancelled - it is not a fit case for imposing penalty under section 271(1)(c) - Decided in favour of assessee.
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