No Penalty for mere reduction in deduction claimed

Issue – Whether the penalty was imposed U/s 271(1)(c ) because of the reason that the deduction claimed under section 80-IB by the respondent-assessee was ultimately allowed at a lower level were valid?

Held – that the mere making of a claim which is ultimately held not to be sustainable in law, would not amount to furnishing inaccurate particulars regarding the income of an assessee. In the present appeals it is only that the claims of deduction under Section 80IB have been downscaled. This, by itself, would not mean that it is a case of furnishing inaccurate particulars of income. Furthermore, there is no finding in the penalty order as to which part of the income the assessee had concealed and with regard to which particular facet of his income had the assessee provided inaccurate particulars thereof.

HIGH COURT OF DELHI AT NEW DELHI

Judgment delivered on: 29.01. 2013

ITA 48/2013, ITA 49/2013

COMMISSIONER OF INCOME TAX (CENTRAL-I)

versus

JAKSON LTD.

JUDGMENT

BADAR DURREZ AHMED, J (ORAL) These appeals by the revenue arise out of the common order dated 22.06.2012 passed by the Income Tax Appellant Tribunal in ITA No.4076/Del/201 1 and 4073/Del/201 1 pertaining to the assessment years 2003-04 and 2004-05.