TMI Blog2014 (9) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment. - Decided in favour of assessee. - ITA Nos. 344 & 393/Jodh/2014 - - - Dated:- 12-9-2014 - SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. For the Appellant: Shri Amit Kothari. For the Respondent: Shri Mahesh Kumar - D.R. O R D E R PER N.K. SAINI, A.M These two appeals by the Department are directed against the separate orders of the Ld. CIT(A), Udaipur dated 14/03/2014 03/04/2014 for the A.Y. 2007-08 2008-09 respectively. Since the issue involved in these appeals is common and the appeals were heard together, so these are being disposed off by this common order for the sake of convenience. 2 First we will deal with the I.T.A.No. 344/Jodh/2014. The only ground raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Export turnover taken in form No.56G has been arrived as under:- Export realization as per enclosed statement details of foreign Earning Exchange FOB and C F basis i.e. Bank realization certificate (BRC), the value comes as under: As per Sum of page No.6 19,50,12,485 As per sum of page No.7. 01,88,96,697 21,39,09,182 Less: Ocean Freight claimed in P L.A/c. Rs.88,55,735 Insurance Rs.00,44,774 00,89,00,509 20,50,08,683 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the calculation of exempt income on Total Turnover of ₹ 22,91,83,541/-. Similarly, while calculating the profits of the business the assessee has included other Income of ₹ 1,00,725/-. The A.R. vide order sheet entry dated 13.11.2009 was asked to show cause as to why ₹ 1,00,725/- be not reduced from the profits of the Business of ₹ 3,37,65,670/- as the said income was not derived from export nor was any kind of manufacturing or production involved. To the above show cause the A.R. agreed to the reduction of ₹ 100725/- shown under the head other Income from profits of the business claimed at ₹ 3,37,65,670/-. Thus, the revised profits of the business comes to ₹ 3,36,64,945/- (33765670-100725/-.). On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter to the ld. CIT(A), who deleted the penalty by observing in para 2.3 of the order which read as under:- 2.3 I have considered the submissions of the appellant as well as the findings of the A.O. given in the penalty order under appeal. The relevant portion of the findings of the assessment order reproduced by the A.O. in the penalty order under appeal have also been gone through. It appears that he has imposed the penalty on the basis of this findings. On going through the findings reproduced by the A.O. it is seen that the appellant has claimed excess claim of exemption u/s. 10B of the act due to some calculation mistakes occurred in calculating the Total Turnover and it is a fact as soon as the A.O. pointed out this mistake, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above and also considering the totality of the case of the appellant, it is held that no penalty u/s.271(1)(c ) of the Act is eligible in the case of the appellant as there is nothing on record to suggest that there is a deliberate and conscious attempt on the part of appellant to conceal or furnish inaccurate particulars of its income. Therefore, the penalty imposed u/s.271(1)( c) of the Act is liable to be cancelled and I order accordingly. Thus, this ground of appeal is allowed. Now the Department is in appeal. 6. Learned D.R. submitted that the claim of the assessee for exemption u/s. 10B of the Act was wrong, therefore, the assessee concealed the income and also furnished inaccurate particulars of income to that extent, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re no information given in the return is found to 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, not exact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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