TMI Blog2022 (9) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... hand - The penalty is therefore not sustainable and is deleted - Decided in favour of assessee. - ITA No. 3049/DEL/2019 - - - Dated:- 25-8-2022 - SHRI N. K. BILLAIYA , ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA , JUDICIAL MEMBER Assessee By : None Department By : Shri M. Baranwal , CIT - DR ORDER PER N. K. BILLAIYA , ACCOUNTANT MEMBER : - This appeal by the Revenue is preferred against the order of the ld. CIT(A) - 4 dated 24.01.2019 pertaining to Assessment Year 2014-15. 2. The solitary grievance of the Revenue is that the ld. CIT(A) erred in deleting penalty of Rs. 86 lakhs made by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 [hereinafter referred to as 'The Act']. 3. None appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the loss and made addition of Rs. 2,77,19,813/- and initiated penal proceedings u/s 271(1)(c) of the Act for filing inaccurate particulars of income. 10. In the penal proceedings, the same query was raised by the Assessing Officer and same reply was filed by the assessee. Once again the Assessing Officer discarded the claim of the assessee and levied penalty of Rs. 86 lakhs for filing inaccurate particulars of income. 11. The assessee challenged the levy of penalty before the ld. CIT(A) and reiterated its claim that since there was no intention to carry on business in future and since the rented premises were returned back to the owner, the assessee could not dismantle the interior and therefore, expenditure incurred was written o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 imaginat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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