9911796707
TMI Blog2015 (8) TMI 1465X X X X Extracts X X X X X X X X Extracts X X X X ..... e, vary any or all the above grounds. Brief facts: 2.Return of income for Assessment Year under consideration was filed on 30.11.2000 declaring total loss of Rs. 3,38,88,620/-. The assessment was completed u/s 143(3) r.w.s.147 completed on 30.03.2005 assessing total loss at Rs. 3,19,96,051/-. During the course of assessment proceedings, it was noticed by the Assessing Officer (AO)that the assessee had made claim of Rs. 15,95,253/- on account of foreign exchange fluctuation on principal treating it as revenue expenditure. This claim of the assessee was disallowed. The AO observed that during the relevant previous year one of the vessels of the company M.T. Pratibha Godavari was repossessed as per the terms and conditions of BBCD agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had not been disputed either by the AO or by the FAA, that the variation was on account of a different view taken by them, that it had not furnished any inaccurate particulars of its total income. The aforesaid explanation was not accepted by the AO. He was of the view that assessee had made mis-statement and suppressed the facts. He was satisfied that assessee had deliberately and consciously attempted to conceal the true particulars of its income and consequently attempted to evade the payment of taxes thereon. Reliance was placed on the decision of Hon'ble Apex Court in the case of Dharmendra Textiles Processors (306 ITR 277) and M/s Gold Coin. The AO held that the assessee had concealed the income by furnishing the inaccurate partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exchange fluctuation,that the assessee had furnished all the details about the claim made by it and had stated that after the repossession of the ship the transaction had become part of the working capital. Thus, all the details of about the claim were available on file.In our opinion, confirmation of an addition by higher judicial forum do not lead to automatic imposition of penalty u/s.271(1)(c)of the Act. Decision in quantum appeal is one of the decisive factor for adjudicating penalty proceedings, but that is not the sole basis. If a claim made by an assessee is not found to be allowable it can be disallowed and added to its taxable income. But, it would not meant that the assessee had concealed the particulars of income or had filed i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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