TMI Blog2020 (2) TMI 1147X X X X Extracts X X X X X X X X Extracts X X X X ..... isclosed by the auditor. It was not the case of the revenue even before the Appellate Authority that the assessee had suppressed any material fact. At the highest, the case of the revenue was that even though the material was disclosed by the assessee but he had claimed certain inadmissible expenses. Claiming of an expense which is not sustainable in itself cannot be a ground for invoking Section 271(1)(c) of the Act. In order to impose penalty under the said section, either there has to be concealed particulars of the income or furnishing of inaccurate particulars of the income. Rejection of a claim that too where in the facts of the present case it was result of change of accounting method is not sufficient for penalising the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the Ld. ITAT have erred on facts and in the law in deleting the penalty levied by the Assessing Officer u/s 271(1)(c) of the Act disregarding the facts that the penalty is leviable on contravention of the provisions of a civil statute like Income Tax Act, there being so many judgments that breach of a civil obligation attracts levy of penalty whether the contravention was made by the defaulters with any guilty intentions or not? (iv) On the facts and in the circumstances of the case the Ld. CIT (A) and the Ld. ITAT have erred on facts and in the law in deleting the penalty especially without appreciating the facts that assessee deliberately filed inaccurate particulars of income so as to reduce its tax liability? The relevant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant assessment year, the assessee changed the accounting method from project completion to percentage method. It was the result of change of method that certain indirect expenses claimed could not be allowed. The account books of the assessee were found to be duly audited and prepared in accordance with accepted accounting standard. The change of accounting method was also duly disclosed by the auditor. It was not the case of the revenue even before the Appellate Authority that the assessee had suppressed any material fact. At the highest, the case of the revenue was that even though the material was disclosed by the assessee but he had claimed certain inadmissible expenses. Claiming of an expense which is not sustainable in it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any statement made or any detail supplied was found to be factually incorrect. Hence, at least, prima facie, the assessee cannot be held guilty of furnishing inaccurate particulars. The Learned Counsel argued that submitting an incorrect claim in law for the expenditure on interest would amount to giving inaccurate particulars of such income . We do not think that such can be the interpretation of the concerned words. The words are lain and simple. In order to expose the assessee to the penalty unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By any stretch of imagination, making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars. In Commissioner of Income Tax, De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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