Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 260 - HC - Income TaxPenalty u/s 271(1)(c) - claiming an expenditure u/s 37 that was not incurred to earn the income in the relevant previous year - HELD THAT:- In the case of Commissioner of Income Tax Vs. Reliance Petroproducts Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] the Supreme Court observes that a mere making of claim, which is not sustainable in law, by itself, will not amount to furnish inaccurate particulars regarding the income. Therefore, mere making of a claim which is disallowed in quantum proceedings, cannot by itself be a ground to impose penalty under Section 271(1)(c) of the Act. The fact that the respondent assessee was following the above method since 1990-1991 till the subject Assessment Year and there was no dispute in respect thereof save for the Assessment Year 2006-07 and the subject assessment year. This fact itself would militate against imposition of any penalty upon the respondent on the ground of furnishing inaccurate particulars of income. The Tribunal correctly set aside the order passed by the Commissioner of Income Tax (Appeals) and directed the Assessing Officer to delete the penalty - Decided in favour of assessee.
|