TMI Blog2013 (5) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... cts Ltd (supra) squarely applies to the facts of the case before us and, therefore, levy of penalty is not justified. - I.T.A. No.2922/M/2012 - - - Dated:- 22-5-2013 - S/SHRI B.R.MITTAL,(JM) AND D.KARUNAKAR RAO (AM) Appellant by : Shri Vishwas Mehendale Respondent by: Shri Manoj Kumar ORDER Per B.R.Mittal, JM: The assessee has filed this appeal for assessment year 2007-08 against order dated 9.2.2012 of ld CIT(A) confirming levy of penalty of ₹ 5,44,540/- u/s.271(1)(c) of the Act. 2. The relevant facts are that assessee filed the return of income declaring total income of ₹ 46,35,990/-, which was assessed u/s.143(3) of the Act at ₹ 62,53,760/-. Assessee is a proprietor of M/s. TCB Produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount. However, the auditor has not mentioned about the amounts which were disallowable u/s.40(a)(ia) of the Act whereas the above expenses are clearly disallowable under the provisions of that section as no TDS was deducted thereon. Therefore, assessee deliberately claimed the deduction which was not allowable as the assessee has failed not to deduct TDS thereon. Ld CIT(A) has stated that had there been no scrutiny assessment u/s.143(3) of the Act, the particulars of income in the return of income had escaped assessment by claiming false claim. Hence, assessee is in further appeal before the Tribunal. 4. At the time of hearing, ld A.R. submitted that assessee has not concealed any particulars of income and the penalty has been levied m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the genuineness of the claim of the assessee has not been disputed by the department. Therefore, it cannot be said that assessee has claimed expenses which are false or not genuine. Assessee has furnished all the relevant facts concerning the claim made by it in the return filed. AO has levied penalty in respect of said amount merely because said claim of the assessee was disallowed u/s.40(a)(ia) of the Act as assessee failed to deduct TDS thereon. The Apex Court in the case of Reliance Petroproducts Ltd (supra) has held that a mere making of the claim which is not sustainable in the law, by itself will not amount to furnishing inaccurate particulars of income. In the present case, admittedly, assessee made a claim but the same was reje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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