Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 1108 - AT - Income TaxPenalty levied u/s 271(1)(c) - assessee has wrongly claimed deduction u/s 80IB - Held that:- Where there is no finding that any details supplied by the assessee in its return were found to be incorrect or erroneous or false, there is no question of inviting penalty under section 271(1)(c) of the Act. A mere making of the claim, which is not sustainable in law, by itself, will not amount to furnishing of inaccurate particulars regarding the income of the assessee. Such claim made in the return cannot amount to inaccurate particulars. In the present case, the assessee had given reason for claiming deduction u/s 80IB. The assessee had correctly disclosed the quantum of investment in plant and machinery in the return of income. The conduct of the assessee clearly show the bona-fide belief that the assessee had about its eligibility for claiming deduction u/s 80IB of the Act. Although vide subsequent notification dated 10.12.1999, the assessee ceased to be SSI undertaking. The assessee had made full disclosure of income in return of income, as well as before the Assessing Officer at the time of assessment proceedings. Therefore, in our considered opinion, it is not a case which would attract levy of penalty. We concur with the findings of Commissioner of Income Tax (Appeals) in deleting the penalty. - Decided in favour of assessee.
|