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TMI Blog2012 (9) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... o be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars. Making an incorrect claim cannot tantamount to furnishing inaccurate particulars. Denial of deduction u/s 80IA as confirmed by the Tribunal was on the obvious claim of deduction when the gross income did not include the power supplied at the rate given by the Electricity Regulatory authority. Same could not trigger the invoking the provisions of Section 271(1)(c) - Decided in favor of assessee - ITA No.040/ CTK/ 2012 - - - Dated:- 25-6-2012 - Shri K.K. Gupta, And Shri K.S.S. Prasad Rao, JJ. For the appellant: S/Shri B.C. Mohanty/P.K. Mishra/ M.R. Sarangi, ARs For the respondent: Smt. Paramita Tripathy, CIT-DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same, the assessee is in appeal before the Tribunal. 3. At the outset the learned CIT-DR Smt.Paramita Tripathy pointed out that the quantum claimed as deduction by the assessee has been confirmed by this Tribunal which may kindly be brought on record as a copy is being furnished hereof now. 4. The learned Counsel for the assessee initiating his argument submitted that the assessment proceedings are separate from the penalty proceedings and the Tribunal s decision in confirming the disallowance of the claim of deduction u/s.80IA rather leans in favour of the assessee insofar as the penalty has been levied by the Assessing Officer on the premise that the assessee had submitted inaccurate particulars. He has perused paragraphs 6 and 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supported by proper documents insofar as the eligible unit was to maintain separate books of account which was not the case of the assessee at all., The Assessing Officer was given the copy of the consolidated audited account and separate audited accounts of the power plant which requires the generation of captive power to be sold in accordance with the provisions of the Electricity Regulatory authority and was therefore to be valued at the rate not according to the expenditure incurred. In other words, the learned Counsel for the assessee submitted that at the time of hearing of the quantum appeal, the learned CIT-DR had categorically mentioned that the computation of income is arbitrary insofar as the income rendered to tax for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of CIT v. Dharampal Premchand Ltd in IT Appeal No.912 of 2010 delivered on 13.9.2010, this legal issue was considered at length when the Hon ble Delhi High Court was apprised to finding the meaning of the word furnishing of inaccurate particulars . The factual matrix considered by the Tribunal was upheld. It was tried to be argued that the falsehood in accounts can take either of the two forms: (i) an item of receipt may be suppressed fraudulently; (ii) an item of expenditure may be falsely (or in an exaggerated amount) claimed, and both types attempt to reduce the taxable income and, therefore, both types amount to concealment of particulars of one s income as well as furnishing of inaccurate particulars of income. But Hon bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rolled back for the purpose of determining that the particulars furnished were inaccurate for invoking the provisions of Section 271(1)(c). 4.2. On the above basis, the learned Counsel for the assessee prayed for cancellation of the penalty levied u/s.271(1)(c). 5. The learned CIT-DR opposed the contention of the learned Counsel for the assessee. She submitted that this Tribunal has confirmed the disallowance of the claim u/s.80IA was therefore furnishing of inaccurate particulars settled by the Tribunal. She submitted that the assessee repeatedly failed to give the books of account of the eligible business for claiming deduction u/s.80IA and the Tribunal gave a finding that the income so claimed for deduction u/s.80IA has not crystalli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en such particulars are found to be inaccurate, the liability would arise. To attract penalty, the details supplied in the return must not be accurate, not exact or correct, not according to the truth or erroneous. Where there is no finding that any details supplied by the assessee in its return are found to be incorrect or erroneous or false there is no question of inviting the penalty under section 271(1)(c). 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. Such a claim made in the return cannot amount to furnishing inaccurate particulars. We are, therefore, of the considered the meaning of the words Particulars as defined by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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