TMI Blog2017 (11) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... s not a case of dispute in quantum of disallowance but a dispute relating to the sustenance of penalty. The AO has imposed penalty for furnishing inaccurate particulars. In the instant case, it cannot be said that the assessee had withheld any relevant information regarding bad debts written off from the AO. With regard to the provisions of section 271 (1) (c) of the Act pertaining to penalty, the Hon’ble Apex court in CIT versus Reliance Petroproducts (P) Ltd (2010 (3) TMI 80 - SUPREME COURT ) has laid down that making of a claim by the assessee which is not sustainable will not amount to furnishing inaccurate particulars. - Decided in favour of assessee. - ITA No. 2898/Del/2014 - - - Dated:- 25-10-2017 - SHRI SUDHANSHU SRIVASTAVA, J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O that the assessee company had become sick due to decrease in demand of black-and-white televisions in the market which had adversely affected the sales of the company product i.e. black-and-white picture tubes. It was further submitted before the AO that the assessee company had duly written off these amounts as bad debts and there was no scope for the AO to disbelieve the claim of the assessee unless there was some cogent evidence or material that the amount so claimed as bad debt was actually recovered/received by the assessee prior to its debit to the profit and loss account. However, as per the AO, the claim of the assessee remained unsubstantiated. The AO proceeded to disallow an amount of ₹ 2,07,07,549/- and added the same to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been imposed because as per the AO, the assessee s claim for bad debts was not tenable as it had written off part of the debts brought forward and had carried forward part of the debts to the next year. The AO has also noted that some payments had been received by the assessee from the debtors whose balances were partially written off during the year under consideration. The AO has relied on the judgments of the Hon ble Apex Court in the case of Bank of Bihar versus CIT reported in 45 ITR 427 and Travancore Tee Estate Company Limited reported in 233 ITR 2003 for the proposition that whether a debt is bad is a question of fact and there should be some evidence to justify the conclusion. The AO has noted that the assessee had failed to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebit to the profit and loss account. 5.2 The Hon ble Delhi High Court in the case of CIT versus Global Capital Limited reported in 306 ITR 332 has opined that post amendment the assessee is not required to establish that the concerned debt has actually become bad in the relevant year for the purpose of claiming deduction and the only requirement for claiming deduction is that the assessee has to write off the relevant debt in the books treating it as bad. The Hon ble Apex Court in the case of TRF Ltd versus CIT reported in 190 taxman 391 (SC) held as follows: This position in law is well settled. After 01/04/1989, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable. It is enough if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. Secondly, the assessee must have furnished inaccurate particulars of his income. The present is not a case of concealment of income. That is not the case of the revenue either. However, the Ld. counsel for the revenue suggested that by making inaccurate claim for the expenditure on interest, the assessee has furnished inaccurate particulars of the income. As per Law Lexicon, the meaning of the word particular is a detail or details (in plural sense); the details of a claim, or the separate items of an account. Therefore, the word particulars used in the section 271 (1) (c) would embrace the meaning of the details of the claim made. It is an admitted position in the present case that no information given in the return was found ..... X X X X Extracts X X X X X X X X Extracts X X X X
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