Brief of the case:
The ITAT New Delhi in the above cited case held that making of an incorrect claim by assessee which is supported by a report of Chartered Accountant cannot be hold as furnishing inaccurate particulars of income. Therefore, penalty u/s 271(1)(c) is not warranted as the claim made under bonafide belief.
Facts of the case:
- The assessee is a company and is engaged in providing certain services including air conditioning, generator backup, interiors, electric, wooden fixtures and fittings etc. to its clients. The assessee claimed deduction u/s 80 IA of the Act to the extent of 100% of its gross total income i.e. Rs.36,80,723/-. The report of Chartered Accountant in Form 10CCB read with Rule 18BBB was filed with the return of income. The assessee has claimed that it is engaged in (i) developing, (ii) operating and maintaining (iii) developing, operating and maintaining, infrastructure facility.
- The AO observed that the assessee is merely providing certain interiors, furniture, fixtures and generator back up power services etc. for BPO/Software companies which are lessees of the building owned by its Director and has received services and hire charges for the same. The assessee is not engaged in the business of developing, operating and maintaining, the infrastructure facilities as specified in Sec.80 IA of the Act. Thus, the deduction was denied to assessee.
- Aggrieved assessee carried the matter in appeal. However, later on assessee withdrawn the appeal. The A.O. thereafter levied penalty u/s 271(1)(c ) of the Acton the ground that the assessee has furnished inaccurate particulars of income. CIT(A) also confirmed the same.
- Aggrieved assessee now in appeal before tribunal.
Contention of the Assessee:
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