TMI Blog2013 (6) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... es. He filed his return of income for A.Y. 2008-09 on 29.07.2008 declaring total income at Rs. nil. The case was selected for scrutiny and thereafter the assessment was framed under Section 143(3) vide order dated 27.12.2010 and the total income before adjustment of business loss for A.Y. 2007-08 was determined at ₹ 1,14,275/-. While framing the assessment, Assessing Officer disallowed the claim of bad debts of ₹ 6,65,360/- and on the aforesaid addition imposed penalty u/s. 271(1)(c) vide order dated 28.06.2011 as he was of the view that the Assessee has concealed the particulars of income and also furnished inaccurate particulars of income and explanation 1 to section 271 (1)(c) was applicable. Aggrieved by the order of Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same ought to have been offered as income in some year. The same does not exists in the present case. The purchase of shares and its consequent writing off do not constitutes claim of bad debts u/s. 36(1)(vii). At the time of making the claim, in its return of income, the appellant was fully knowing that its claim is based upon totally inaccurate particulars. The argument of appellant are far from convincing and in any case are not supported by the evidences brought out on record. Thus it is a clear cut case of filing of inaccurate particulars of income by the appellant. Thus, seen the claim of the appellant no stretch of imagination falls in the category of a debatable issue on a legal fiction but is squarely a claim being made upon ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submitted that it is not a case where false claim has been made by the assessee and is also not a case of furnishing of inaccurate particulars of income. The assessee was under bona fide belief that the deduction was allowable to the assessee. The assessee placed reliance on the decision of CIT vs. Reliance Petro Products Private Limited 2010 230 (CTR) SC 320. He also relied on the decision of Ahmedabad tribunal in the case of Dhanashree Agro Products CIT(A) No. 423/A/2010. He also placed on record a copy of the order of the aforesaid decision. The learned D.R. on the other hand submitted that the case of the assessee is not of mere denial of bad debts and the transaction did not fall within the meaning of Section 36 (1)(vii) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lows. On the other hand, if the assessee is able to offer an explanation, which is not found by the authorities to be false, and assessee has been able to prove that such explanation is bona fide and that all the facts relating to the same have been disclosed by him, then in that case penalty shall not be imposed. 10. In the present case the assessee had disclosed the material facts before the AO. When the assessee has made a particular claim in the return of income and has also furnished all the material facts relevant thereto, the disallowance of such claim cannot automatically lead to the conclusion that there was concealment of particulars of his income by the assessee or furnishing inaccurate particulars thereof. What is to be seen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
