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2013 (10) TMI 871 - ITAT DELHIPenalty u/s 271(1)(c) of the Income Tax Act – Held that:- As per decision in case of Reliance Petroproducts Pvt.Ltd.[ 2010 (3) TMI 80 - SUPREME COURT], it was stated by the Hon'ble Jurisdictional High Court that mere submitting a claim which is incorrect in law would not amount to giving inaccurate particulars of the income of the assessee but if the claim, besides being incorrect in law is mala fide, Explanation 1 to Section 271(1)(c) would come into play – However, in the present case, assessee has not made any claim for deduction which is found to be not allowable by the Assessing Officer. Assessee is manufacturing home decorative items, cutlery, tableware etc. which are being supplied to its associated enterprise viz., Michael Aram Inc., USA. Since the transaction of sale between the assessee and associated enterprise was international transaction, the matter was referred to TPO for determining the arm's length price. The TPO determined the arm's length price at more than the sale consideration shown by the assessee - Whatever sale consideration was received by the assessee from its associated enterprise was duly accounted for. It is also not in dispute that the assessee has furnished all the particulars with regard to sale made to associated enterprise. The details supplied by the assessee in its return of income are not found to be incorrect or erroneous or false. Merely because some adjustment is made by applying transfer pricing provisions, it cannot be said that there was any concealment of income or furnishing of inaccurate particulars – Decided in favor of Assessee.
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