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2017 (2) TMI 163 - ITAT MUMBAIPenalty under section 271(1)(c) - assessee was a sick company and under a scheme of revival by the BIFR, the management and shareholding pattern changed hands following which old directors resigned and new directors were inducted on the board of directors of the assessee - additions made by the AO on the basis of audited annual accounts filed by the assessee with the return of income by disallowing all the expenses charged to the profit and loss account - Held that:- After dismissal of quantum appeal by the FAA, the AO mechanically levied penalty without recording any findings that as to how the assessee has concealed the income or filed in accurate particulars of income. Mere making a claim of expenses in the profit and loss account in a case where the accounts of the assessee were audited and also accounts were prepared under professional guidance and advice would not automatically lead to inference that assessee is liable to the penal action u.s 271(1)(c) of the Act. A mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Therefore, in our opinion the ld.CIT(A) has rightly deleted the penalty imposed by the AO after taking into account the contentions put forth by the assessee vis-a-vis the provisions of the Act by relying on the ratio in the decision of the Reliance Petroproducts Pvt Ltd (2010 (3) TMI 80 - SUPREME COURT ) - Decided in favour of assessee.
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