No Penalty despite unsustainable/ non-debatable claim by the Assessee if duly disclosed by the Assessee
Issue – Whether in the facts and in the circumstances of the case and in law, the ITAT was right in holding that the wrong claim made by the assessee is not filing of inaccurate particulars, ignoring the fact that the assessee has knowingly claimed the setting off of loss against other source of income under the same head arising out of sell of units US-64 to be exempted u/s. 10(33) as income includes loss which has been accepted by the assessee before the ITAT during the course of quantum appeal ?
Held – Tribunal in the impugned order held that the respondent- assessee had in its return of income filed a note with its computation of income disclosing all details about the sale of US 64 units, the loss and resultant carry forward. Further, all details were disclosed in its return of income as is evident from the fact that the assessing officer gathered information about the carry forward loss and sale of units from return filed by the respondent- assessee. The Tribunal held that the from the aforesaid facts at the highest it can-be said that the claim of the assessee was not sustainable in law but there was no furnishing of inaccurate particulars or concealment of income on the part of the respondent- assessee. Thus, the penalty was set aside. We find that the same view is taken by the Apex Court in the matter of CIT v. Reliance Petroproducts Pvt. Ltd. reported in [2010] 322 ITR 158 (SC). As the decision of the Tribunal is essentially based on finding of fact, we see no reason to entertain the proposed question of law. (Para -6)
HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL (LOD) NO. 49 OF 2013,
INCOME TAX APPEAL (LOD) NO. 50 OF 2013
INCOME TAX APPEAL (LOD) NO. 51 OF 2013
Commissioner of Income Tax-14, Mumbai
V/s.
Nalin P. Shah (HUF)
CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ.
