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TMI Blog2015 (12) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... aiming the following substantial question of law:- Whether in the facts and in law, the Hon'ble ITAT was correct in law in deleting the penalty levied on the ground that in similar circumstances the penalty had already been deleted for the immediately subsequent year without appreciating the facts of both these years for entirely different from each other? 2. Briefly stated, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee is engaged in the business of manufacturing of MS Ingot, MS Bars, ERW Pipes and GI Pipes. It filed its return on 30.11.2006 for the assessment year 2006-07 declaring the income at Rs. 3,67,510/- and Rs. 4,85,74,964/-for the purposes of Section 115JB of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e A-2, the revenue filed an appeal before the Tribunal. The Tribunal vide order dated 21.1.2015 (Annexure A-3) upheld the order of the CIT(A) and dismissed the appeal holding that under the similar circumstances, the Tribunal had deleted the penalty for the assessment year 2007-08. Hence, the present appeal by the revenue. 3. Learned counsel for the revenue submitted that the deduction under Section 80IC of the Act was not allowable on the transport subsidy, bank interest and mibor premium as rightly held by the Assessing Officer. It was urged that in such circumstances, the CIT(A) had wrongly deleted the penalty of Rs. 75,06,450/-. It was further argued that the Tribunal has also erred in holding that in the similar circumstances it had d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same material. According to the CIT(A), there was no concealment of income or furnishing of inaccurate particulars. The CIT(A) had noticed as under:- "4.3. I have considered the submissions made above. The additions have been made by the A.O. against transport subsidy, Bank interest and Mibore Premium. The A.O. has disallowed the transport subsidy holding that it is not earned through any manufacturing process and it is not a profit derived from the business of the assessee. Similarly, the Bank interest and Mibor Premium has been disallowed considering that these income are not derived from industrial undertaking but are merely incidental to the business of industrial enterprises. However, similar additions made in A.Y. 2007-08 has al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 depend upon the return filed by the assessee, because that is the only document where the assessee 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, nor exact or correct, no according to the truth or erroneous. Considering the facts of the case, therefore, it is noted that all the particulars and primary facts are duly disclosed by the appellant. The books of accounts are audited and Auditor's cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be incorrect 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 depend upon the return filed by the assessee, because that is the only document where the assessee 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, nor exact or correct, no according to the truth or erroneo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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