TMI Blog2016 (8) TMI 733X X X X Extracts X X X X X X X X Extracts X X X X ..... rove that the claim of expenses by the assessee was not genuine or was inflated to reduce its tax liability. Further, merely because additions have confirmed in appeal or no appeal has been filed by assessee against additions made, it cannot be the sole ground for coming to the conclusion that assessee has concealed any income. Further, in the present case, there is nothing on record to demonstrate that assessee had filed inaccurate particulars of income or had concealed the particulars of income. We also get support from the judgement of the Hon’ble Supreme Court in the case of CIT vs. Reliance Petroproducts Pvt.Ltd. reported at (2010 (3) TMI 80 - SUPREME COURT ), wherein the Hon’ble Apex Court has held that a mere making of the claim, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggrieved by the order of the Assessing Officer (AO), assessee carried the matter before the Ld.CIT(A) who vide order dated 17/11/2009 (in Appeal No.CAB/IV-A-100/05-06) granted partial relief to the assessee by confirming the addition on account of disallowance of interest to the extent of ₹ 4,73,510/- and thereby granting relief to the extent of ₹ 5,34,396/-. On the disallowance of interest of ₹ 4,73,510/- that was upheld by ld.CIT(A), AO vide order dated 30/03/2011 held that assessee had furnished inaccurate particulars of income and thereby concealed the income and therefore assessee was leviable for penalty u/s.271(1)(c) of the Act and accordingly levied penalty of ₹ 1,69,100/-. Aggrieved by the order of AO, asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds purchases nor had any other business purpose. Further in respect of list-C also, appellant could not substantiate its claim that the advances were for expenses or for machinery. Again appellant's contention that it had non-interest bearing capital or in other words, interest free funds at its disposal were also not supported with any facts and figures and these facts clearly establish that the appellant had failed to file accurate particulars of income. The Ld. CIT(A) has further observed that on the other hand due to appellant facing financial difficulties and availing waiver of interest on bank loans under One Time Settlement (OTS) scheme, its net worth must have eroded. The Ld. CIT(A) has observed that in any .case, since the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n business purposes on the ground that the appellant had filed inaccurate particulars of income. The Ld. CIT(A) has failed to take cognizance of the important fact that the appellant had sufficient interest free funds available for giving the impugned interest free advances. The penalty being bad in law and contrary to facts is prayed to be deleted. 3. On the date of hearing, none appeared on behalf of appellantassessee nor any adjournment application has been filed. Since there is no appearance on behalf of assessee, we proceed to decide the appeal exparte , qua the assessee, on the basis of details available on record. 3.1. Before us, ld.Sr.DR supported the order of lower authorities. 4. We have heard the ld.Sr.DR, perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses by the assessee was not genuine or was inflated to reduce its tax liability. Further, merely because additions have confirmed in appeal or no appeal has been filed by assessee against additions made, it cannot be the sole ground for coming to the conclusion that assessee has concealed any income. Further, in the present case, there is nothing on record to demonstrate that assessee had filed inaccurate particulars of income or had concealed the particulars of income. We also get support from the judgement of the Hon ble Supreme Court in the case of CIT vs. Reliance Petroproducts Pvt.Ltd. reported at (2010) 322 ITR 158 (SC), wherein the Hon ble Apex Court has held that a mere making of the claim, which is not sustainable in law, by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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