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TMI Blog2013 (6) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... , perhaps there was no claim against the interest. The assessee provided the interest on the accrual basis but simultaneously made a debit entry against such interest. This is purely a bonafide claim based on bonafide belief. Thus the penal provision cannot be attracted in such a situation and accordingly delete the penalty. In favour of assessee. - ITA No. 122/CHD/2010 - - - Dated:- 21-6-2013 - Shri T. R. Sood And Ms. Sushma Chowla,JJ. For the Appellant : Shri Ajay Jain For the Respondent : Shri J. S. Nagar ORDER Per T. R. Sood, AM. The appeal by the assessee is directed against the order passed by the Ld. C IT(A), Chandigarh dated 17.11.2009. 2. In this appeal, the assessee has raised the following effective ground: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that explanation was already furnished before the Assessing Officer during assessment proceedings. In fact the assessee has made provision for interest on the advances given to Govt. of Punjab and CONWARE. Those loans were not recoverable and the entry for interest was made only for the purpose of memory by way of memorandum entries. Since the interest was not recoverable, a corresponding entry was made on the debit side of the profit loss account by way of provision of interest not recoverable. At best, the only fault of the assessee is that it has passed accounting entries against the income which was not recoverable. In this regard, he referred to para 37 of the order of the Tribunal where in the next year, the similar addition on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal by following the decision of the Hon'ble Madras High Court in the case of South India Surgical Co. Ltd 287 ITR 62. However, the undisputed fact remains that principal amount due from Punjab Government as well as from CONWARE was written off in the next year i.e. assessment year 2005-06. This fact has been noted even by the Tribunal in assessee's own case vide para 21 in ITA Nos. 204, 311 292, 459 427/Chandi/2008 relating to assessment years 2004-05 2005-06 order dated 23.09.2009 . This clearly shows that assessee was not hoping to recover the interest and entry of interest was made only for memorandum purposes i.e why corresponding debit entry was also made. It is settled law that penalty proceedings are not automatic in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulars of the income of the assessee. Secondly, 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 assesse 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 by the assessee, because that is the only docume ..... X X X X Extracts X X X X X X X X Extracts X X X X
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