TMI Blog2013 (9) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... a mala fide attempt to evade tax. A penalty is imposed only if the claim is mala fide or raised with intent to evade tax – Decided against the Revenue. - Income Tax Appeal No.183 of 2013 - - - Dated:- 6-9-2013 - Rajive Bhalla And Dr. Bharat Bhushan Parsoon,JJ. For the Appellant : Mr. Denesh Goyal, Advocate ORDER Rajive Bhalla, J. The revenue impugns order dated 8.3.2013 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar and order dated 25.5.2012 passed by the Commissioner of Income Tax (Appeals), deleting the penalty imposed by the Assessing Officer. Counsel for the appellant submits that as the assessment order was upheld by the Income Tax Appellate Tribunal, the order imposing penalty, under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g claim for deduction u/s 80IB could be attributed to a bona fide mistake and therefore penalty u/s 271 (1)(c) is not attracted against the assessee. We have heard counsel for the appellant, perused the impugned orders and find no reason to entertain the appeal, much less on the questions of law raised by the appellant. The assessee filed a return of income claiming deductions under section 18(1)(b) of the Act. The deductions were disallowed. The Assessing Officer, also directed initiation of penalty proceedings, under Sections 271(1)(c) of the Act. The Assessing Officer's order was affirmed up to the Income Tax Appellate Tribunal. The Assessing Officer, thereafter, passed an order imposing penalty. Aggrieved by this order, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the appellant claimed any exemption after disclosing relevant basic facts and under ignorance of the provisions of the Act had not offered amount of tax, penalty should not be imposed. In such cases, it is the duty of the Assessing Officer to ask for further details and tax the income if it is liable to tax. There was no concealment of income and penalty could not be imposed. Again the Madhya Pradesh High Court in the case of CIT Vs. Rajiv Udyog 227 ITR 209 (MP) held that where the appellant claimed the deduction under chapter VIA and the same was disallowed by the Assessing Officer, it cannot be said to be concealment of income as per Explanation 1 to Sec. 271(1)(c) The other judicial decisions relied upon by the appellant's counsel an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars of income. The revenue, thereafter, filed an appeal before the Income Tax Appellate Authority, which was dismissed by holding as follows:- We are of the view that the facts and circumstances of the case reported in 322 ITR 158 (Supreme Court) in the case of CIT Vs. Reliance Petro Products Pvt. Ltd. are totally identical to the facts of the present case and the learned First Appellate Authority has rightly deleted the penalty in dispute in the present appeals. By respectfully following the various decisions mentioned in the impugned orders, the arguments advanced by learned D.R. are not relevant to the facts of the present case, therefore, the same are rejected and on the contrary the argument advanced by learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Delhi High Court has held in Zoom Communication Private Limited's case (supra), that if an assessee is unable to explain as to in what circumstances and on account of whose mistake, deductions were claimed, it would amount to raising a mala fide claim that would invite penalty. We cannot, but agree with the observations by the Delhi High Court, but, as the situation, on facts, in the present case, is entirely different, find no reason to depart from the ratio laid down by the Hon'ble Supreme court in Reliance Petro Products' case (supra). The deductions were claimed in a bona fide exercise of the right of an assessee to claim deduction. The fact that this claim was rejected, does not raise inference of a mala fide attempt to evade ..... X X X X Extracts X X X X X X X X Extracts X X X X
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