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TMI Blog2019 (3) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... e DCIT, Circle - 4(1)(2), Ahmedabad for the Assessment Year 2012-13. 2. The assessee has filed its return of income on 29.09.2012 declaring total loss of Rs. 21,76,48,367/-. The revised return of income was filed on 28.09.2013 declaring total loss of Rs. 22,20,12,614/-. Upon scrutiny u/s 143(3) of the Act, the assessment was finalized on 17.03.2015 assessing total loss at Rs. 20,98,48,475/- disallowed on account of claim on loss to the tune of Rs. 1,21,63,139/-. Penalty proceeding was initiated for furnishing inaccurate particulars of income. 3. The brief facts leading to this case is this that Vini Sales and Distributions Pvt. Ltd. (VSDPL) was amalgamated with the assessee company in terms of the scheme of arrangement approved by the Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has committed default of furnishing of inaccurate particulars of income. Consequently, penalty of Rs. 39,46,331/- was levied. In appeal, the penalty was deleted by the Learned CIT(A). Hence, the instant appeal filed by the Revenue before us. 4. At the time of hearing of the instant appeal the Learned Counsel appearing for the assessee submitted before us that while imposing penalty the Learned AO needs to establish beyond doubt that the assessee has concealed the particulars of income and inaccurate particulars of income were furnished deliberately. But in this particular case, there is only disallowance of brought forward loss not amounting to concealment by the assessee. In fact, all the material facts in the form of schedule rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. In this connection, it may please be noted that conditions to fulfilled with respect to unabsorbed business loss and unabsorbed depreciation (prior to 1st April, 2010) are as per provision of sec. 72A of the Act. The fulfillments of conditions are stipulated as under Conditions to be fulfilled in case of VSDPL Remarks has been engaged in the business, in which the accumulated loss occurred or depreciation remains unabsorbed, for three or more years. The company is incorporated on 07.11.2009 and hence the condition is not fulfilled has held continuously as on the date of the amalgamation at least three-fourths of the book value affixed assets held by it two years prior to the date of amalgamation The company is incorporated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rong claim of the set off loss. Had the case not been selected under scrutiny the Assessee would have been gone away with the excess benefit of carry forward of loss amounting to Rs. 1,21,63,139/- and consequent short levy .of tax. Thus, these facts clearly established that the assessee has furnished inaccurate particulars of income as per the provisions of Act and the A.O has correctly initiated penalty proceedings u/s 271(1)( c) of the Act. 4. Further, the Hon'ble Supreme Court in the case of Union of India v/s. Dharmendra Textile Processors [212 CTR 432 (SC)] has held that 'the penalty u/s.27T(1)(c) is a civil liability and element of willful concealment is not essential ingredient for attracting civil liability as the case in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(c) for furnishing of inaccurate particulars of income this cannot arise at all. The Learned CIT(A) while deleting the penalty relied upon the judgment passed by the Hon'ble Tribunal at Chandigarh Bench in ITA No.529/Chd/2014 for A.Y. 2007-08 in the matter of DCIT-vs-The Bilaspur Distt. Co-op Marketing and Consumer Federation Ltd. Mandi where it has been decided that when the assessee has disclosed all particulars rightly before the Learned AO during the assessment proceeding and nowhere it was found any concealment of any facts relating to such particulars of income or furnishing of inaccurate particulars, penalty cannot be imposed. The judgment cited by the Hon'ble Supreme Court in the matter of Price Water House Cooper Pvt. Ltd.-vs-CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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