TMI Blog2013 (10) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied by the assessee in its return are found to be incorrect or erroneous or false there is no question of inviting the penalty under section 271 (1)(c) - A mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee - Such a claim made in the return cannot amount to furnishing inaccurate particulars - the Penalty Deleted – Decided in favour of Assessee. - ITA No. 32/Jodh/2013 - - - Dated:- 26-9-2013 - Shri Hari Om Maratha And Shri N. K. Saini,JJ. For the Petitioner : Sh. Amit Kothari For the Respondent : Dr. Deepak Sehgal-CIT- DR. ORDER Per Hari Om Maratha, J.M. This appeal of the assessee for A.Y. 2005-06 is directed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... successful in getting the entire penalty deleted. The revenue is in appeal. 2.3 We have heard the rival submissions and have carefully perused the entire material on record. In fact, during the course of search proceedings, various incriminating evidence were found. Statements of the assessee and other members of his family were recorded u/s 132(4) of the Act. The assessee offered a sum of Rs. 7 crores for taxation in his hands and in the hands of other family members. The assessee filed Return of Income [ROI] u/s 153A and has honoured the surrendered amount by offering them for taxation in different A.Ys. He has paid due tax also. During this year, originally, the assessee returned income of Rs. 8,82,690/- which has been revised to Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income" or "furnishing of inaccurate particulars of income" is found to have been committed by the assessee. These are two different omissions or defaults albeit they refer to deliberate act on the part of the assessee. A mere omission or negligence would not constitute a deliberate act of either suppressio veri or suggestio falsy. By the mere reason of such concealment or of furnishing of inaccurate particulars alone, the assessee does not, ipso facto, become liable to a penalty. Imposition of penalty is not at all automatic. Meaning thereby, any addition in quantum would not lead to automatic levy of penalty and this is also true in respect of furnishing of inaccurate particulars of income. Not only is the levy of penalty discretionary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee can furnish the particulars of his income. When such particulars are found to be inaccurate, the liability would 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 under section 271 (1)(c). A mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such a claim made in the return cannot amount to furnishing inaccurate particulars." 3. Adverting to the facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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