TMI Blog2014 (1) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... particulars of income or for concealment of income - Every case of confirmation of disallowance cannot be regarded as a case of furnishing of inaccurate particulars of income or concealment of income - Following COMMISSIONER OF INCOME-TAX Versus RELIANCE PETROPRODUCTS PVT. LTD. [2010 (3) TMI 80 - SUPREME COURT] - Simply for the reason that the Assessing Officer did not find the claim of the assessee to be sustainable in law up to a certain extent, it can not be a case for penalty u/s.271(1)(c) - Decided in favour of assessee. - ITA No. 1602 to 1604/M/2012 - - - Dated:- 16-1-2014 - Shri P. M. Jagtap And Shri Sanjay Garg,JJ. For the Petitioner : Ms. Sheela Chitlangia For the Respondent : Shri Sanjeev Jain, D.R. ORDER Per S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee by claiming depreciation on the assets had furnished inaccurate particulars of its income. Thus he levied minimum penalty on the income concealed of Rs.6,55,380/- which was worked out at Rs.2,33,971/-. 4. The ld. CIT(A) observed that the assessee had not voluntarily offered the disallowance for taxation and even the explanation given by it was false and not bonafide, he therefore confirmed the penalty. The assessee is thus in appeal before us. 5. We have heard the ld. Representatives of the parties and have also gone through the record. 6. The assessee had claimed the depreciation on the ground of temporary suspension of the business whereas the AO disallowed the claim observing that the business was suspended since December 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT Vs. Reliance Petro Products Pvt. Ltd. [(2010) 322 ITR 158 (SC)] has held that simply for the reason that the Assessing Officer did not find the claim of the assessee to be sustainable in law up to a certain extent, it can not be a case for penalty u/s.271(1)(c), more so when the particulars furnished by the assessee were not inaccurate. 8. In the case in hand, the assessee though had suspended the business, but it had not decided on the date of filing the return of income to close the same and was looking out for possibilities to revive and converting the same into a profit making venture, though it could not succeed in doing so. Moreover, the assessee was already running into losses. If the intention of the assessee had not been t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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