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TMI Blog2014 (2) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is not entitled to deduction - Relying upon the decision in CIT v. Reliance Petroproducts (P.) Ltd [2010 (3) TMI 80 - SUPREME COURT] - The claim for deduction is not sustainable - It is not a concealment of particulars of income or furnishing of inaccurate particulars of income - Decided against Revenue. - D.B. INCOME TAX APPEAL NO.77/2013 - - - Dated:- 17-10-2013 - DINESH MAHESHWARI AND P.K. LOHRA, JJ. For the Appellant : K.K. Bissa JUDGMENT :- BY THE COURT: Having heard the learned counsel for the appellant and having perused the material placed on record, we are satisfied that no substantial question of law is involved in this appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 ['the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised return not a valid one; and completed the assessment on total income of Rs.3,90,76,700, disallowing both the claims of deduction under Section 80P(2)(c)(ii)) and 80P(2)(d) made in the first revised return. During the assessment proceedings, penalty notice was also issued with reference to such claims of deduction, requiring the assessee to show cause as to why penalty under Section 271(1)(c) should not be imposed on it for alleged concealment of particulars of income/furnishing of inaccurate particulars of income. The assessee submitted that in essence, it was a technical error, which occurred due to amendment of the provisions of Section 80P of the Act; and the mistake was sought to be rectified in the re-revised return. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the assessee claimed deduction of interest expenditure which has not been accepted by the Revenue, penalty under section 271(1)(c) is not attracted and mere making the claim which is not sustainable in law by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Similarly, the Honourable High Court of Gujarat in the case of CIT v. Manibhai Bros. (supra) it has been held that if an assessee wrongly claims some deduction under a bona fide mistake, he cannot be considered liable for penalty. In the present case, the appellant has claimed deduction under section 80P which was surrendered by filing the revised return as soon as the A.O. confronted to the amendment made in section 80P(4) according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been making similar claim and the same were being allowed in earlier assessment years. Due to sudden change in law, this claim was not allowed and the assessee also corrected its mistake by filing a revised return, it is not a case of wilful wrong claim. Therefore, we do not find any mistake in the order of the ld.CIT(A) and confirm the deletion of impugned penalty. The appeal of the revenue deserves to be dismissed. We, dismiss the same." The Revenue seeks to question the order so passed by ITAT with the submissions that in the original return, no claim for deduction was made but it was made by filing the revised return and, thereafter, when confronted, the assessee attempted to file a belated re-revised return. Thus, according to the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (4) by Finance Act, 2006 with effect from 01.04.2007 that the provisions of Section 80P were made inapplicable in relation to any Co-operative Bank other than the Primary Agriculture Credit Society or Primary Co-operative Agriculture and Rural Development Bank. Apparently, the claim for this deduction in the assessment year 2007-08 had been a matter of bona fide mistake and could not have been taken to be a case of concealment of particulars of income or furnishing of inaccurate particulars of income. In fact, when confronted with the legal position, the assessee filed re-revised return, albeit belatedly, withdrawing such claim of deduction. The Appellate Authorities i.e., CIT(A) and ITAT have, in our view, rightly examined the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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