Director of Income Tax (International Taxation) Vs Niko Resources Ltd (Gujarat High Court)
Gujarat High Court held that disallowance of claim made in return cannot amount to furnishing of inaccurate particulars. Accordingly, penalty under section 271(1)(c) of the Income Tax Act cannot be levied in such case. Thus, appeal of revenue dismissed and questions of law answered in favour of assessee.
Facts- The present petition has been preferred by the revenue. It is mainly contested that the Appellate Tribunal has substantially erred in confirming the order passed by the CIT(A) in cancelling the penalty levied under section 271(1)(c)of the I.T.Act, 1961. Further, it is also contested that Appellate Tribunal has substantially erred in confirming the order of the CIT(A) in holding that no penalty should be levied under section 271(1)(c) if the tax liability as per the return of income and order giving effect to CIT(A)/ITAT remains the same due to provisions of MAT.
Conclusion- Held that no penalty could have been levied upon the appellant in absence of any finding that details supplied by the appellant in the return of income were found to be incorrect, erroneous or false. Similarly, so far as the claim of depreciation on land based drilling platform is concerned, this Court in case of Niko Resources Ltd. reported in (2017) 88 taxmann.com 691 (Gujarat) has held that mineral oil Wells to be treated as plant and not building and therefore, in view of such facts also the Tribunal has rightly deleted the penalty levied upon the appellant assessee. Therefore, we answer the questions of law in favour of the assessee and against the Revenue. Appeals are accordingly dismissed.
