Claiming of deduction with full disclosure on a debatable issue while filing ROI, penalty not warranted

Hero Honda Motors Ltd. Vs. DCIT (ITAT Delhi)- We have also noted that full particulars were disclosed by the assessee in the computation of income enclosed with the return of income. We also noted that the stand taken by the assessee was supported by an existing order of Ld CIT(A) rendered in the case of Maruti Udyog Ltd. (supra) and is also supported by a subsequent decision of the Tribunal rendered in the case of Honda Siel Power Products Ltd. (supra). Subsequently, a Five Members Special Bench was constituted in the case of DCIT v. Glaxo Smithkline Consumers Healthcare Ltd. (supra) and Special Bench has decided this issue against the assessee.

Under these facts, in our considered opinion, the stand taken by the assessee at the time of filing of return of income was a possible and plausible view and therefore, the penalty is not justified. The judgement of Honourable Apex Court rendered in the case of CIT v. Reliance Petro products Ltd. reported in 327 ITR 158 also supports the case of the assessee because in that case, it was held by Honourable Apex Court that mere making of a claim by itself will not amount to furnishing of inaccurate particulars regarding the income of the assessee and such a claim made in the return of income cannot amount to concealment of income or furnishing of inaccurate particulars of income unless it is found that any details supplied by the assessee in this return were found to be incorrect or erroneous or false. In our considered opinion, this judgement of Honourable Apex Court supports the case of the assessee in the present case and respectfully following this judgement, we delete the penalty.

ORDER

A. K. GARODIA,