TMI Blog2022 (12) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee finds that in the case of CIT vs Reliance Petro Products (P) Ltd. [ 2010 (3) TMI 80 - SUPREME COURT] has held that making of claim which is not sustainable in law and claim made in the return cannot be held to be furnishing of inaccurate particulars of income, merely because the assessee claimed deduction interest expenditure which is not been accepted by the revenue and penalty cannot be levied u/s 271(1)(c). On the same analogy, we find that the facts of assessee s case are quite similar. We, therefore, respectfully follow the same set aside the order of ld. CIT(A) - Appeal of the assessee is allowed. - I.T.A. No. 174/Kol/2022 - - - Dated:- 30-11-2022 - RAJESH KUMAR , ACCOUNTANT MEMBER And SONJOY SARMA , JUDICIAL MEMB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imitation period. 3. Brief facts of the case are that the assessee filed his return of income on 30.09.2015 for the relevant assessment year 2015-16 declaring total loss of Rs. 55,83,286/-. Subsequently, the case was selected for scrutiny through CASS. The notice u/s 143(2) and 142(1) were issued. During the course of scrutiny proceedings, it was noticed that books of accounts and computation of income that were debited an amount of Rs. 17,73,675/- under the head Exceptional Items . The AO held that expenditure would be capital in nature and he disallowed the entire amount of Rs. 17,73,675/- and added back to the total income of the assessee and penalty proceedings u/s 271(1)(c) were initiated separately for concealment of income/furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er: The objective behind the enactment of section 271(1)(c) read with the Explanations indicates that the said section has been enacted to providing for a remedy for loss of revenue and such penalty was a civil liability and, therefore, wilful concealment is not an essential ingredient for attracting civil liability as was the case in the matter of prosecution under section 276C of the Act. 4.4.2 Further, in ihe case of CIT Ahmadabad V. Reliance Petroproducts (P) Ltd. [2010] 189 Taxman 322; Hon'ble Supreme Court of India, though decided the case in favour of Reliance Petroproducts (P) Ltd, has held in para 8 as under: There can be no dispute that everything would depend upon the Return filed because that is the only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o appreciate that the ld. AO has never concluded that there was a prima facie case to issue notice u/s 271(1)(c) of the Act and ld. CIT(A) erred in holding that the AO has rightly levied the penalty u/s 271(1)(c) of the Act. He submitted that the AO has not detected any concealment on account of particulars of income or furnishing inaccurate particulars of said income because the assessee had furnished all the details before the AO and this fact is acknowledged by the AO. Accordingly to the ld. Counsel for the assessee nothing was conceal from the AO, assessee had submitted all details in point no. 3 of Note no. 20 of final account of the company regarding expenditure of Rs. 17,73,675/-. However the company could not be interpreted properly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim which is not correct or not as per provisions of the Act or which the AO considered to be not correct even then the penalty cannot be levied as the full facts were before the AO in the return of income. The facts of the assessee finds that in the case of CIT vs Reliance Petro Products (P) Ltd. (2010) 322 ITR 158 whereby Hon ble Supreme Court has held that making of claim which is not sustainable in law and claim made in the return cannot be held to be furnishing of inaccurate particulars of income, merely because the assessee claimed deduction interest expenditure which is not been accepted by the revenue and penalty cannot be levied u/s 271(1)(c). On the same analogy, we find that the facts of assessee s case are quite similar. We, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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