TMI Blog2013 (5) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... wance has been made does not call for levy of penalty us/ 271(1)(c). Thus penalty levied by the AO cancelled. In favour of assessee. - ITA No.1626/ Ahd/2010 - - - Dated:- 30-4-2013 - Shri G. C. Gupta And Shri Anil Chaturvedi,JJ. For the Appellant : Shri M. J. Shah, AR For the Respondent : Shri Sunil Kumar, SR-DR ORDER Per Anil Chaturvedi, Accountant Member:- This appeal of the assessee arises from the order of Commissioner of Inc-tax (Appeals)-III, Baroda ('CIT(A)' for short) in appeal No. CAB/III/359/06- 07 dated 22-02-2010. 2. Brief facts of the case are that assessee is a company engaged in business of manufacturing of besan, chanadal etc. and filed its return of income for AY 2002-03 declaring total income of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could not recover was rightly claimed of bad debt. The AO did not agree with the contention of the assessee and added it to the income of the assessee. The aforesaid addition was one of the item on which the AO levied penalty and which was confirmed by Ld. CIT(A) by holding in para-3.1 of his order as under:- "3.1 I have given my careful consideration to the facts of the case as also the submission. Therefore, facts in brief are that the appellant had sold one factory shed for Rs.40,00,000/- in the year 1996-97. Out of the total sale consideration, it apparently received only Rs.28,47,950/-. In the year under consideration, the appellant claimed the balance amount of rs.11,52,010/- as bad debt which was disallowed by the AO as not fallin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case. 'The obligation is not only to disclose particulars of income but to disclose them correctly and completely. If while disclosing the particulars of income in the return, he puts them under a wrong head, he can be said to be furnishing inaccurate particulars of income. The particulars of income can be made inaccurate in variety of ways, a glaring illustration of which would be where the assessee while stating the income under a particular head, works out the income chargeable to tax after making deductions which are falsely made. Such a process would make the particulars of income inaccurate. In all such cases, whether the income is not disclosed against the constituent item of the return in which it falls or is partly not disclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. DR of the Revenue on the other hand submitted that assessee has made a wrong claim of deduction. He further submitted that had the case of assessee not selected for scrutiny the assessee's claim would have gone unprocessed. He, therefore submitted that assessee's claim of bad debt was case of furnishing of inaccurate particulars of income and therefore liable for penalty. He further relied on the decision of Delhi High Court rendered in the case of CIT v. Zoom Communication P. Ld (2010) 327 ITR 510 (Del). 6. We have heard the rival submissions and perused the materials available on record and the case laws cited by both the sides. The undisputed fact in this case are that amount that was written off and claimed as bad debt was on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to its total income. This can only be described as a human error which one is prone to make. Absence of due care does not mean that the assessee is guilty of either furnishing of inaccurate particular or attempting to conceal its income. 7. In the case of Zoom Communication P. Ltd. (supra) , the Hon'ble Delhi High Court in para-16 has held as under:- "16. The proposition of law which emerges from this case, when considered in the backdrop of facts of the case before the court is that so long in the assessee has not concealed any material fact or the factual information given by him has not been found to be incorrect, he will not be liable to imposition of penalty u/s. 271(1) of the Act, even if the claim made by him is unsustainable in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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