Swaminarayan Co-op. Bank Ltd. Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that merely making a claim that is not sustainable does not amount to furnishing inaccurate particulars of income. Accordingly, penalty u/s. 271(1)(c) of the Income Tax Act not justified.
Facts-
The Assessee is a Co-operative Bank stated to be in liquidation. The RBI vide its order cancelled the license granted to the bank to carry on banking business in India. The assessee filed its Income Tax Return for AY 2010-11 on 07/10/2010, declaring income of Rs.1,21,94,779/- under the head of “income from business or profession”. After claiming set off of brought forward business loss of AY 2003-04 to the extent of income available, the gross total income was worked out at Rs.NIL.
The case was selected for scrutiny by issuing notice u/s.143(2) of the Act. Notices u/s.142(1) were issued and assessee filed replies to the said notices. During the course of assessment proceedings, the AO observed that the assessee has not filed return of income for the period from A.Y. 2003-04 to A.Y. 2008-09. The AO asked to furnish the proof of filing of return of income, but the assessee could not submit the same except for the A.Y. 2003- 04. The assessee was given opportunity to show cause as to why the claim of set off of brought forward losses should not be rejected. The AO, not being satisfied with the reply of the assessee, passed order rejecting the claim for set off of brought forward business loss of AY 2003-04 against the income to the extent of Rs. 1,21,94,779/- The AO also initiated the penalty proceedings u/s 271(1)(c) for furnishing inaccurate particulars and concealment of income.
CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
