Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 426 - ITAT, AHMEDABADPenalty in respect of fixed deposit written off - additions made was in respect of claim of bad debt - AO made the addition on the premise that the assessee is not engaged in financing business and the amount written off is a fixed deposit kept in the bank and at the best it represents a capital loss and is not admissible as revenue expenditure – Held that:- Assessee had genuinely suffered loss due to deposit kept in bank during the course of its business - every transaction the issue becomes debatable whether such loss is capital loss or revenue loss - “a mere making of claim which is not sustainable in law, by itself, would not amount to furnishing of inaccurate particulars regarding income of the assessee. Such a claim made in a return not amounting to furnishing of inaccurate particulars” - penalty is not leviable especially when the issue is debatable - assessee has not concealed any particulars of income or furnished any inaccurate particulars - penalty levied by the revenue on the issue of unrealizable fixed deposit kept in bank written off due to cessation of the functioning of the bank deleted
|