Case Law Details
Jain Peripherals P. Ltd Vs DCIT (ITAT Delhi)
Hon’ble Apex Court in the case of CIT Vs. Reliance Petro Products (P) Ltd. 322 ITR 158 (2010) held that ‘a mere making of the claim, which is not sustainable in law by itself will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such claim made in the return cannot amount to inaccurate particulars. The Assessee has furnished all the details of its expenditure as well as its income in his return, which details in themselves, were not found to be inaccurate nor could be viewed as the concealment of income on its part. It is up to the authorities to accept its claim in the return or not. Merely because the Assessee had claimed the expenditure which claim was not accepted or was not acceptable to the revenue, that by itself would not attract the penalty it/s 271(1)(c). If the contention of the revenue is accepted then in case of every return where the claim made is not accepted by the Assessing Officer for any reason, the Assessee will invite penalty u/s 271(1)(c) and it dearly not the intendment of the legislature’.
Hence, considering the peculiar facts and circumstances, as the Assessee had already closed down its business and therefore, could not file the part documents as required by the Assessing Officer, however, from the documents produced, it is apparently clear that required details with regard to the purchase price/value of the property was available before the authorities below and even also we find the claim made by the Assessee as bona fide and therefore cannot be termed as dishonest or mala fide, hence we are of the considered view that in facts and circumstances and the documents available on record as stated above, no penalty is leviable . Even otherwise we also do not find any material/reason or justification for levy of penalty and affirmation thereof. Consequently, the penalty under challenge is deleted.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal has been preferred by the Assessee against the order dated 19.07.2019, impugned herein, passed by the learned Commissioner of Income-tax (Appeals)-5, New Delhi (in short “Ld. Commissioner”), u/s. 250 of the Income-tax Act, 1961 (in short ‘the Act’) for the assessment year 2014-15.
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