2016 (11) TMI 801

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..... ter "the Act"], the revenue claims to be aggrieved by the setting aside of the penalty imposed by the Assessing Officer (AO) under Section 271(1)(c) of the Act. The assessee had, during the AY 2008-09 reported a transaction of sale of its assets. The case was selected for scrutiny. The property sold was an industrial plot in Sector 80, Noida. During the course of assessment, the AO enquired why th .....

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..... bona fide or the issue debatable in any circumstance which may justify the discharge of notice under Section 271(1)(c). Relying on the judgment in CIT v. N.G. Technologies Ltd. 2015 (370) ITR 7, learned counsel submitted that the explanation of mistake on the part of the Chartered Accountant [hereafter referred to as "the CA"] in this case was specious. It is submitted that every company is under .....

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..... submitted that by making incorrect claim of deduction/expenditure, the assessee has furnished inaccurate particulars of income. As per law Lexicon, the meaning of the word "particulars" is a detail or details (in plural sense); the details of a claim or the separate items of an accounts. Therefore, the word "particulars" used in Section 271(1)(c) would embrace the meaning of the details of the cla .....

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..... f the authorities below, direct the AO to delete the penalty in question levied under section 271(1)(c) of the Act. The appeal of the assessee, is therefore, allowed." 4. The ITAT, we notice, took note of the Explanation 1(A) and 1(B) to Section 271(1)(c). Under Explanation 1(A), penalty would be attracted if an assessee fails to offer an explanation or offers a false explanation. Under Explanati .....

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..... rts. To expect assessees to scan each assessment with a fine comb, as is suggested by the revenue, and thereafter be told that the explanation about its reliance upon expert advice is not bona fide, in the facts of this case, at least do not appeal to this Court. Being a finding of fact based upon broad probabilities, the Court is of the opinion that no substantial question of law arises. 6. The .....

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