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2020 (3) TMI 881 - HC - Income TaxPenalty u/s 271(1)(c) - Whether 'mens rea' or deliberate attempt is not essential for levy of penalty, if it is established that assessee has furnished inaccurate particulars or concealment of particulars of income, penalty is levaible? - HELD THAT:- A bare perusal of the provisions of section 271( 1)(c) would indicate that there has to be concealment of the particulars of the income or furnishing of inaccurate particulars of the income of the assessee. As held by the Supreme Court in the case of Reliance Petro products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] the meaning of the word "particulars" used in the Section 271(1)(c) would embrace the meaning of the details of the claim made. The principal argument of revenue that at the time of filing of the return, the claim was made as revenue expenditure, while the Assessing Officer treated the same as the capital expenditure, we are not in a position to accept the contention as canvassed on behalf of the Revenue. As held by the Supreme Court in Reliance Petroproducts Pvt. Ltd. [Supra] unless the case is strictly covered by the provision, the assessee cannot be exposed to penalty. In short, the penalty provision cannot be invoked unless a clear cut case is made out - making an incorrect claim by any stretch of imagination would not tantamount to furnishing inaccurate particulars. A mere making of the 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 the inaccurate particulars. Therefore, assuming for a moment, the claim was made as revenue expenditure, but in fact, it was found to be capital expenditure that by itself would not be sufficient to arrive at the conclusion that the case is one of inaccurate particulars. - Decided against revenue.
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