If two views possible than AO should take the one favourable to Assessee

If two views are possible than Assessing Officers should take the one favourable to the Assessee and penalty for concealment cannot be levied. CIT Vs Mahavir Irrigation Pvt Ltd (Delhi High Court)– In this case, there is no finding that any details supplied by the assessee in its Return were found to be incorrect or erroneous or false. Such not being the case, there would be no question of inviting the penalty under Section 271(1)(c) of the Act. A mere making of the claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such claim made in the Return cannot amount to the inaccurate particulars.

IN THE HIGH COURT OF DELHI AT NEW DELHI

SUBJECT : INCOME TAX ACT

Judgement Reserved on: 2^nd November, 2010

Judgement Pronounced on: August 03, 2011

ITA No. 1266/2009

THE COMMISSIONER OF INCOME TAX- II- Appellant

Through: Mr. Sanjeev Sabharwal, Sr. Standing Counsel with Mr. Utpal Saha, Advocates

Vs

MAHAVIR IRRIGATION PVT. LTD. – Respondent

Through: Mr. M.S. Syali, Sr. Advocate with Mr. Mahua Kalra, Mr.Mayank Nagi and Mr. Sumit K. Singh, Advocate

CORAM:

HON’BLE MR. JUSTICE A.K. SIKRI

HON’BLE MR. JUSTICE SURESH KAIT