TMI Blog2012 (10) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... s unilaterally written back the accounts of the sundry creditors in its P&L account as a matter of fact the liability was shown in the balance sheet as on 31-3-2007. The assessee being a limited company, this amounted to acknowledging the debt in favour of the creditors for the purposes of section 18 of the Limitation Act, 1963. The assessee’s liability to the creditors, thus, subsisted and did not cease nor was it remitted by the creditors and the liability was enforceable in a court of law. This being no concealment on the part of the assessee which may call for levy of penalty u/s 271(1)(c) - in favour of assessee. - I.T.A. No. 3091/Mum/2011 - - - Dated:- 18-7-2012 - SHRI DINESH KUMAR AGARWAL AND SHRI B. RAMAKOTAIAH, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... void payment of tax thereon and accordingly he imposed penalty of Rs. 3,30,000/- vide order dtd. 28-6-2010 passed u/s 271(1)(c) of the Act. On appeal, the ld. CIT(A) while observing that in the instant case, the appellant has furnished in-accurate, untrue and false particulars of income to the extent of Rs. 9,79,615/- and accordingly confirmed the penalty imposed by the A.O. 3. Being aggrieved by the order of the ld. CIT(A) the assessee is in appeal before us challenging in all the grounds the sustenance of penalty of Rs. 3,30,000/- levied by the A.O. u/s 271(1)(c) of the Act.. 4. At the time of hearing the ld. counsel for the assessee submits that due to consistent low demand and non-availability of Working Capital Finance the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents, Bharuch July, 2000 21,000 4. B.P. Refractory, 502/14 GIDC, Ankleshwar, Gujarat. October, 1999 50,549 5. Jay Poly Coats P. Ltd, 8 Dashrathbhai Estate, Admedabad, Gujarat July, 2001 16,252 6. Perfect Scale Sale Services, Swaminarayan Slope, Bharuch, Gujarat. April, 2001 2,910 7. Royal Fibro, 4919, GIDC, Ankleshwar, Gujarat June, 2001 3,400 8. Sachin Fabricators, C-1/B/2519 MIDC, Ankleshwar, Gujarat. August, 2001 3,560 9. Sneha Corporation, 2,Bansidhar Complex, GIDC, Ankleshwar, Gujarat. August, 2001 12,034 10. Universal Traders, 2615/41, Bansidhar Complex, GIDC, Ankleshwar, Gujarat September, 2001 17,420 11. Thirumalai Chemicals limited, 25A Sipcot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me. According to the ld. counsel for the assessee it is absolutely clear that the observation made by the A.O. and subsequently confirmed by the ld. CIT(A) are factually incorrect and this is not a case of furnishing of inaccurate particulars of income leading to concealment of and hence penalty cannot be levied. Reliance was also placed in CIT vs. Raj Trading Co. (1996) 217 ITR 208 (Raj) and CIT vs. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR 158(SC). 5. On the other hand, the ld. D.R. supports the order of the A.O. and the ld. CIT(A) 6. We have carefully considered the submissions of the rival parties and perused the material available on record. We find the facts are not in dispute inasmuch as it is also not in dispute that the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the provision, the penalty provision cannot be invoked. By no stretch of imagination can making an incorrect claim tantamount to furnishing inaccurate particulars. There can be no dispute that everything would depend upon the return filed y the assessee, because that is the only document where the assessee can furnish the particulars of his income. When such particulars are found to be inaccurate, the liability could arise. To attract penalty, the details supplied in the return must not be accurate, not exact or correct, not according to the truth or erroneous. Where there is no finding that any details supplied by the assessee in its return are found to be incorrect or erroneous or false there is no question of inviting the penalty und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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