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2021 (12) TMI 653 - DELHI HIGH COURTPenalty u/s 271(1)(c) - Issue of use of single-year data - whether multiple-year data can be used or only current-year data ? - ITAT in its impugned order has recorded that prior to 2007, there was a legal debate as to whether multiple-year data can be used or only current-year data is to be used under Rule 10B(4) of the Rules - ITAT further records that the other reason for making the adjustments in the relevant AY was the denial of the capacity utilization claimed by the respondent and difference in the level of capacity utilization is an accepted principle, though denied in the relevant AY to the respondent and same cannot tantamount to filing without good faith and due diligence - HELD THAT:- We do not find any infirmity in the above observation of the learned ITAT. As held by the Supreme Court in Commissioner of Income Tax, Ahmedabad vs. Reliance Petroproducts Pvt. Ltd., [2010 (3) TMI 80 - SUPREME COURT] for the purpose of invoking Section 271(1)(c) of the Act, there has to be a concealment of particulars in the income of the assessee and the assessee must have furnished inaccurate particulars of his income. Making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars under Section 271(1)(c) of the Act. Mere making of a claim which is not sustainable in law, by itself, will not tantamount to furnishing inaccurate particulars regarding income of the assessee. Merely because, the assessee had claimed an expenditure, which claim was not accepted or was not acceptable to the Revenue, that by itself would not attract the penalty under Section 271(1)(c) of the Act.
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