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TMI Blog2013 (10) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... has been placed upon the judgment in the case of CIT v. Rubber Udyog Vikas (P) Limited, [2011 (2) TMI 858 - PUNJAB AND HARYANA HIGH COURT], wherein it was held that making incorrect claim would not tantamount to furnishing of inaccurate particulars unless it was established that the assessee had acted with mala fide intention or had claimed deductions being aware of the well settled legal position – Thus, the instant case is not a fit case for imposition of penalty u/s 271(1)(c) of the Income tax act – Decided against the Revenue. - ITA No.122 of 2012 (O&M) - - - Dated:- 8-8-2013 - Ajay Kumar Mittal And Jaspal Singh,JJ. For the Appellant : Mr. Rajesh Katoch, Advocate For the Respondent : Mr. H. O. Arora, Advocate ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iery goods at Ludhiana. A survey under Section 133A of the Act was carried out in the business premises of the assessee. It surrendered undisclosed income amounting to Rs. 1.20 crores under different heads. The said income was included in the profit and loss account and offered to tax. However, the assessee claimed deduction on the entire income under Section 80IB of the Act which included the aforesaid surrendered Income of Rs. 1.20 crores. The assessment was completed on 27.10.2004 (Annexure A.1) under section 143(3) of the Act at the total Income of Rs. 1,22,49,207/- after making disallowance on account of claim of excess deduction under section 80IB of the Act on surrendered income. The assessee filed appeal before the Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer was justified in levying penalty under Section 271(1) (c) of the Act. According to the learned counsel, the CIT(A) as well as the Tribunal had erred in cancelling the penalty. 4. On the other hand, learned counsel for the assessee submitted that the claim of deduction under Section 80IB of the Act on the surrendered amount was a debatable issue and there was no malafide intention on the part of the assessee in claiming the deduction. Reliance was placed upon judgments in Reliance Petroproducts (P) Limited's case (supra), CIT v. Shahabad Cooperative Sugar Mills Limited, (2010) 322 ITR 73 (P H), CIT v. Arisudana Spinning Mills Limited, (2010) 326 ITR 429 (P H) and CIT v. Rubber Udyog Vikas P. Limited (2011) 335 ITR 558 (P H). The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aim but not an incorrect claim. In the present case, the assessee has made claim which does not fall under the provisions of Section 271(1) (c) of the Act, as there are divergent judicial opinions, on such claim made by the assessee. Having regard to the above legal and factual discussions and respectfully following the decision of the Hon'ble Supreme Court and the Hon'ble Jurisdictional High Court reproduced above, the finding of the learned CIT(A) is upheld. It had been noticed by the Tribunal that there was no false claim made by the assessee though the same was found to be incorrect. There was no mens rea on the part of the assessee to claim the deduction and therefore, the case did not fall under Section 271(1) (c) of the Act as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to income which does not form part of the total income under the Act. It was further pointed out that the dividends from the shares did not form the part of the total income. It was, therefore, reiterated before us that the Assessing Officer had correctly reached the conclusion that since the assessee had claimed excessive deductions knowing that they are incorrect; it amounted to concealment of income. 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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