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TMI Blog2012 (11) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 - As it is not the case of the Revenue that the claim made by the assessee was found to be false or untrue based on no material or bonafide belief, we are of the view that there is no concealment on the part of the assessee which may call for levy of penalty u/s 271(1)(c) - in favour of assessee. - I.T.A. No. 7097/Mum/2010 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponse to the show cause notice as to why penalty u/s 271(1)(c) should not be imposed, it was inter alia submitted by the assessee that the assessee has filed details of the foreign traveling expenses and submitted that the entire expenses have been incurred in connection with business or promotion of the business. It was further submitted that merely on account of not producing the documentary evidence does not mean that the assessee has not incurred such expenses or has concealed the particulars of its income and accordingly it was prayed that the penalty should not be levied. However, the A.O. did not accept the assessee s explanation. According to the A.O. since the assessee has not filed supporting evidence in support of the foreign vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dispute that the assessee has filed complete details of foreign travelling expenses and the purpose of the visit to foreign countries. However, in the absence of any documentary evidence to show the business relationship of the foreign trips, the A.O. disallowed the foreign travelling expenses Rs. 1,86,368/- out of the total expenses claimed by the assessee at Rs. 3,41,672/- on which the A.O. has also imposed penalty u/s 271(1)(c) of the Act. On appeal the ld. CIT(A) while rejecting the condonation of delay of 92 days held on merits that since the assessee has failed to file documentary evidence, the A.O. was justified in imposing the penalty. 8. In Mahaveerprasad Jain v. CIT (1988) 172 ITR 331(M.P) it has been held (Headnote): Where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecame a partner under the partnership deed dated September, 1975, was operating the account of the firm since May 17, 1976, covering the period falling within the disputed assessment year; (v) that the firm's letter dated August 27, 1976, covering the disputed assessment year, addressed to the Regional Transport Officer also indicated that one of the persons, who became a partner under the partnership deed of September, 1975, was admitted as a partner and also acted as a partner during the relevant account year; (vi) that the firm's chartered accountants had been their standing chartered accountants for several years; (vii) that neither the firm nor the chartered accountants had at any time since after the disputed assessment year and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... econdly, the assessee must have furnished inaccurate particulars of his income. The meaning of the word particulars used in section 271(1)(c) would embrace the details of the claim made. Where no information given in the return is found to be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars In order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By no stretch of imagination can making an incorrect claim tantamount to furnishing inaccurate particulars. There can be no dispute that everything would depend upon the return filed y the assessee, because that is the only document where the assessee can furnish the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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