9911796707
TMI Blog2012 (10) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... the following substantial question of law:-' "Whether on the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal is justified in deleting the penalty u/s 271(1)(c) amounting to Rs.31,16,226/- ignoring the fact that the assessee has not followed the method of accounting consistently as far as booking losses on forward contract is concerned which tantamounts to "furnishing of inaccurate particulars of income?" 2. The facts necessary for adjudication of the present appeal as narrated therein are that the assessee filed its return of income on 31.10.2005 for the assessment year 2005-06 declaring an income of Rs. 3,33,49,930/-. The assessment in this case was framed under Section 143(3) of the Act by the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0) 322 ITR 158 (SC) had held that mere making of a claim which was ultimately found to be unsustainable may not by itself amount to furnishing of inaccurate particulars regarding the income. The revenue was required to show that the deduction claimed was against the statutory provision. It was recorded as under:- "We have already seen the meaning of the word "particulars" in the earlier part of this judgment. Reading the words in conjunction, they must mean the details supplied in the return, which are not accurate, not exact or correct, not according to truth or erroneous. We must hasten to add here that in this case, there is no finding that any details supplied by the assessee in its return were found to be incorrect or erroneous or fal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the above said background, the facts of the case are to be looked into. The assessee before us had suffered losses on account of certain forward contracts. The plea of the assessee in this regard is that the aforesaid loans on account of forward contracts were intimated by the bank during the financial year 2004-05. The requisite details of the said contracts are tabulated at page 5 of the assessment order and the perusal of the same reveals that the bank advice is dated falling within the previous year 2004- 05. On the basis of the said advice of the bank, the assessee had booked the losses/income arising on account of forward contracts. All the above said contracts admittedly had expired during the financial year 2003-04 as is eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X
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