TMI Blog2013 (5) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... g certain expenses in a bona fide manner which had been disallowed by AO and AO has not been able to make out a case for imposition of penalty u/s 271(1)(c). See Reliance Petroproducts Pvt. Ltd. (2010 (3) TMI 80 - SUPREME COURT) wherein held that a mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars - Against revenue. - ITA No.490/Del/2012 - - - Dated:- 12-4-2013 - Shri J. S. Reddy And Shri Chandra Mohan Garg,JJ. For the Appellant : Shri Bhim Singh, Sr. DR For the Respondent : Smt. Avnish Ahlawat, Sh. Paras Choudhary ORDER Per Chandra Mohan Garg, Judicial Member. This appeal has been preferred by the revenue against the order of Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f above mentioned additions pertaining to miscellaneous and development expenses respectively. The balance Rs.79,01,535/- was considered capital expenditure and was capitalized towards the cost of asset with the assessee for which it was held that the assessee is entitled for depreciation on prescribes rates. Being aggrieved by the above appellate order of Commissioner of Income Tax(A), the assessee filed an appeal before the ITAT and got further relief and the issue of disallowance of the capital expenditure was set aside to the file of Assessing Officer for fresh adjudication at the end of Assessing Officer. Finally the assessment was completed by the Assessing Officer at an income of Rs.71,045/- vide assessment order dated 15.12.2009. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uggests that in order to be covered by it, there has to be concealment of the particulars of the income of assessee. Secondly, the assessee must have furnished inaccurate particulars of his me. The meaning of the word "particulars" used in section 271(I)(c) would embrace the details of the claim made. Where no information given in the return is found to be correct or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars. In order to expose the assessee to penalty, unless the case is strictly covered by 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 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed. The DR further submitted that as per the facts and circumstances of the case, the Assessing Officer rightly inferred that claiming excessive deduction also amounts to concealment as well as furnishing of inaccurate particulars of income. The ld. DR placed his reliance on the judgment of Hon'ble Kerala High Court in the case of Commissioner of Income Tax vs Sea Foods(1961) 105 ITR 708 (Kerala) and Commissioner of Income Tax vs Gates Foam Rubber Company (1973) 91 ITR 467 (Kerala). Replying to the above contentions, the counsel of the assessee submitted that the case was neither related to the concealment of particulars of income nor furnishing of inaccurate particulars of income. The counsel further submitted that the assessee claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f his income. 6. On careful consideration of the peculiar facts and circumstances of this case, we hold that it is a case of wrong claim because a part of the development expenditure has been allowed by the Assessing Officer as revenue and remaining major part of the claim has been held as capital expenditure on which depreciation has been allowed to the assessee. Accordingly, the Commissioner of Income Tax(A) rightly held that the assessee has neither concealed its particulars of income nor provided inaccurate particulars of income as far as the claiming of these expenses is concerned. We are also in agreement with the findings of the Commissioner of Income Tax(A) that it is clearly a case of claiming certain expenses in a bona fide mann ..... X X X X Extracts X X X X X X X X Extracts X X X X
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