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TMI Blog2016 (7) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... unt submissions made with documentary evidence before the AO and the copy of the same was also before CIT(A). 2. Ld. CIT(A) is grossly erred in confirming the addition even without referring the document furnished before her and stating that "The appellant had not complied with directions of the AO and had not submitted the various details called for by the AO even during proceedings before the CIT(A). The averments made by CIT(A) is bad being all information are available on the file of AO as well CIT(A). 3. Appellant has every right to make, add, delete, modify or alter any grounds of appeal at the time of hearing. 2. The brief facts of the case are that the assessee filed the return declaring total income of Rs. 13,17,150/- on 8.11.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO no penalty can be levied. No penalty can be levied if the claim of the assessee for deduction has been rejected. The AO considered the submissions of the assesee and observed that the same are not found acceptable. AO held that the assessee was in full knowledge of the claims made by him with regard to furnishing inaccurate particulars of income. Therefore, a penalty of Rs. 54,615/- was levied u/s. 271(1)(c) of the Income Tax Act, 1961 vide order dated 29.8.2011. 3. Against the above Penalty Order dated 29.8.2011 passed by the Assessing Officer, assessee appealed before the Ld. First Appellate Authority, who vide impugned order dated 05.9.2012 dismissed the appeal of the assessee. 4. Against the above order of the Ld. CIT(A) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission of the assessee is not found acceptable. During the assessment proceedings. the assessee had stopped attending and submitting details as had been requested. The assessee had failed to substantiate its claims and provide documentary evidence. The assessee only submitted details long after the assessment had been completed. Also the assessee did not contest the findings of the assessment before the Hon'ble ITAT. As per Explanation 1 to section 271(1)(c) of IT Act; where in respect of any facts material to the computation of the total income of any person under this Act,- (A)such person falls to offer; an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sadayappan (1990) 185 ITR 49, 54. In a recent case, the Supreme Court, in the case of Union of India vs. Dharmendra Textile Processors (306 ITR 277), held that the object behind enactment of section 271(1)(c) read with Explanations indicate that the said section has been enacted to provide for a remedy for loss of revenue and they create the element of strict liability on the assessee for concealment or for giving inaccurate particulars while filing return. The penalty under that provision is a civil liability. Wilful concealment is not a civil liability unlike the matter of prosecution under section 276C. In view of the above, it is seen that the assessee was in full knowledge of the claims made by him with regard to furnishing inaccura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s found to be incorrect or inaccurate. We further find that section 271(1)(c) postulates imposition of penalty for furnishing of inaccurate particulars and concealment of income. In this regard, we draw our support from the decision of the Hon'ble CIT vs. Reliance Petroproducts Pvt. Ltd. (2010) 322 ITR-158 (SC) wherein, the Hon'ble Supreme Court has held that 'where there is no findings that any details supplied by the assessee in its return are found to be incorrect or erroneous or false, there is no question of inviting the penalty u/sec. 271(1)(c) of the Act. A mere making a claim, which is not sustainable in law, by itself, will not amount of furnishing inaccurate particulars regarding the income of the assessee. Such claim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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