TMI Blog2015 (12) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... ate 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 erroneous - Decided in favour of assessee - ITA No. 295 of 2015 (O&M) - - - Dated:- 5-10-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a vide order dated 31.8.2010 under Section 263 of the Act finding the said order to be erroneous as well as prejudicial to the interest of the revenue, set aside the same for re-examination of deduction claimed by the assessee under Section 80IC of the Act. Thereafter, the Assessing Officer during proceedings under Section 143(3) read with Section 263 of the Act vide order dated 23.12.2011 made the total addition of ₹ 2,23,00,432/- on account of disallowance under Section 80IC of the Act in respect of transport subsidy, bank interest and mibor premium. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity the CIT(A) ]. The CIT(A) vide order dated 28.1.2013 dismissed the said appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The additions on account of disallowance under Section 80IC of the Act had been made by the Assessing Officer holding that the transport subsidy was not earned through any manufacturing process and it was not profit derived from the business of the assessee. Additionally, the bank interest and mibor premium were also disallowed considering that these incomes were not derived from industrial undertaking but were merely incidental to the business of industrial enterprises. The CIT(A) while deleting the penalty, inter alia, noticed that in the assessment year 2005-06, the assessee had claimed deduction under Section 80IC of the Act which was allowed by the Assessing Officer under Section 143(3) of the Act. In the present case, the return fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y. 2006-07 was filed on the basis of audited balance sheet and audit certificate issued u/s 80IC which was also allowed u/s 143(3) vide order dated 05.09.2008. The assessment order was however, set aside and disallowance was made subsequently. All the information, particulars and facts are duly disclosed with the return of income and only view contrary to the original assessment was taken in the re-assessment proceedings based on the same materials. Therefore, it is seen that the appellant had duly disclosed the primary facts in the return. In the case of CIT vs. Reliance Petroproducts Pvt. Ltd. 322 ITR 158 (SC), it is held that A glance at the provisions of Section 271(1)(c) of the Income Tax Act, 1961 suggests that in order to be covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e penalty imposed by the A.O. is, therefore, cancelled. 5. The Tribunal had affirmed the aforesaid findings of the CIT (A). Following the judgment of the Apex Court in Commissioner of Income Tax v. Reliance Petroproducts Ltd. (2010) 322 ITR 158 (SC), it was observed as under:- 7. Further in the similar circumstances the Tribunal deleted the penalty in Assessment Year 2007-08 by making following observations:- The Ld. CIT(A) has correctly adjudicated the issue because part of the addition has already been deleted by the Tribunal. Otherwise mere claim of deduction under bonafide belief cannot be taken as concealment of income or furnishing inaccurate particulars of income particulars. In this regard the Hon'ble Supreme Court h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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