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The ACIT, Circle-1, Ajmer Versus M/s Ajmer Urban Co-operative Bank Ltd.,

2016 (8) TMI 912 - ITAT JAIPUR

Penalty u/s 271(1)(c) - Addition on account of bad and doubtful debts claimed by the assessee u/s 36(1)(viia) - Held that:- In the instant case, the penalty has been levied for claiming deduction u/s 36(1)(viia) of the Act - Held that:- CIT(A) has given a categorical finding that it has not been shown how by making the claim in respect of Provision for bad and doubtful debts, the assessee has concealed or furnished inaccurate particulars of income. The appellant has explained that the claim was .....

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e findings of the ld CIT(A) deleting the penalty levied under section 271(1)(c) of the Act. - Decided in favour of assessee. - ITA Nos. 861/JP/2013 - Dated:- 20-7-2016 - SHRI KUL BHARAT, JM AND SHRI VIKRAM SINGH YADAV, AM For The Assessee : Shri Gaurav Sharma (CA) For The Revenue : Smt Roshanta Meena (JCIT) ORDER PER SHRI VIKRAM SINGH YADAV, A.M. This is an appeal filed by the Revenue against the order of ld. CIT(A), Ajmer dated 16.09.2013 wherein the Revenue has taken the following grounds of a .....

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including provision for bad and doubtful debts of ₹ 277.93 lacs and contribution to gratuity fund of ₹ 5,38,000/-. The matter was carried in appeal and the Coordinate Bench vide its order dated 22.12.2011 has confirmed both the disallowances. The AO thereafter levied the penalty u/s 271(1)(c) holding that in view of the decision of Hon ble ITAT, he was satisfied that assessee has furnished inaccurate particulars of income and concealed the tax, therefore it is liable for penal action .....

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the case of CIT vs. Harshvardhan Chemicals & Minerals Ltd. 259 ITR 212 (Raj.) that assessee having claimed some deduction which are debatable, it could not be said that it has concealed any income or furnished inaccurate particulars of income and penalty under sec. 271(1)(c) could not be levied. In this context, it may be mentioned that there are no two opinions about the settled position of law that regular assessment proceedings and penalty proceedings are two entirely different subjects .....

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d and doubtful debts in case of Co-operative Bank, assessee has concealed or furnished inaccurate particulars of income. The appellant has explained that the claim was made for liability determined as per the RBI guidelines and auditors have concurred with the said claim of liability of the bank. Further, as there was substantial loss, there was not tax benefit to the assessee. The said explanation has not shown to be false or malafide and all the relevant facts for computation of income have be .....

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t is seen that assessee has submitted the bonafide explanation for the claim made regarding gratuity. The assessee has disclosed the amount of Provision for gratuity in its profit and loss account and assessee has claimed the said deduction. However, though it is genuine liability, the disallowance was made due to technical reason as the said fund was not approved gratuity fund. The assessee has disclosed all the material facts necessary for computation of income. It is not the case that expendi .....

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ssessee has preferred an appeal against the said order of Hon ble ITAT regarding deduction for Provision for bad and doubtful debts u/s 36(1)(viia) of the Act before Hon ble Rajasthan High Court which is currently pending adjudication. 2.3 The ld AR further submitted that the assessee has furnished all the details regarding provisions for bad and doubtful debts in its return of income, which details, in themselves, were not found to be inaccurate nor could be viewed as the concealment of income .....

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the disallowance of provision for bad and doubtful debts as well as gratuity contribution has been confirmed by the ITAT and the AO has rightly levied the penalty for furnishing inaccurate particulars of income. He relied upon the order of the AO. 2.5 We have heard the rival contentions and pursued the material available on record. In the instant case, the penalty has been levied for claiming deduction u/s 36(1)(viia) of the Act. The AO has relied solely on the decision of the Coordinate Bench i .....

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