2018 (2) TMI 1205

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..... u/s 271(1)(c) of the Act on account of disallowance of depreciation amounting to Rs. 2,57,677/- on the ground that no business income was earned during the year under assessment. In this respect it was submitted that though the assessee did not contest the addition but levy of penalty u/s 271(1)(c) was not warranted as the assessee had filed complete details including particulars of assets on which depreciation was claimed. It was submitted that though the assessee had rightly claimed the depreciation but even if the claim was wrong, every wrong claim by the assessee cannot tantamount to furnishing of inaccurate particulars of income or concealment of income. Reliance was placed on the judgment of Hon'ble Supreme Court in the case of CI .....

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..... he assessee must have furnished inaccurate particulars of his income. The instant case was not the case of concealment of the income. That was not the case of the revenue either. It was an admitted position in the instant case that no information given in the return was found to be incorrect or inaccurate. It was not as if any statement made or any detail supplied was found to be factually incorrect. Hence, at least, prima facie, the assessee could not be held guilty of furnishing inaccurate particulars. The revenue argued that submitting an incorrect claim in law for the expenditure on interest would amount to giving inaccurate particulars of such income. Such cannot be the interpretation of the concerned words. The words are plain and sim .....

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..... accounts can take either of the two forms: ft) an item of receipt may be suppressed fraudulently; (i\) an item of expenditure may be falsely (or in an exaggerated amount) claimed, and both types attempt to reduce the taxable income and, therefore, both types amount to concealment of particulars of one's income as well as furnishing of inaccurate particulars of income. Such contention could not be accepted as the assessee had furnished all the details of its expenditure as well as income in its return, which details, in themselves, were not found to be inaccurate nor could be viewed as the concealment of income on its part. It was up to the authorities to accept its claim in the return or not. Merely because the assessee had claimed the .....

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