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TMI Blog2014 (2) TMI 457X X X X Extracts X X X X X X X X Extracts X X X X ..... ulars - The AO merely proceeded on the footing that the assessee furnished inaccurate particulars by claiming addition of the expenditure which is not otherwise admissible under law – previously also, the penalty is not leviable and the Revenue appears to have not preferred any appeal - there is no malafide intention on the part of the assessee in claiming the impugned expenditure as revenue in nature – the order of the CIT(A) upheld – Decided against Revenue. - ITA No. 2711/Mum/2011 - - - Dated:- 7-8-2013 - Shri D. Manmohan and and Shri Sanjay Arora, JJ. For the Petitioner: Ms. R.M. Madhavi For the Respondent: Shri A.K. Bagadia ORDER Per D. Manmohan, V.P This appeal by the Revenue is directed against the order dated 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 24,72,133/- without making necessary and adequate enquiries. Consequent thereto the AO gave an opportunity to the assessee to explain his case as to why the deduction referable to loss on sale of fixed asses is not admissible. The AO noticed that there was no cessation of block of assets and therefore the assessee is not entitled to claim loss on sale of fixed assets. Accordingly a sum of Rs. 24,72,133/- was added to the taxable income and simultaneously penalty proceedings were initiated under section 271(1)(c) of the Act. The case of the AO was that the loss was capital in nature and hence not eligible for deduction whereas the assessee wrongly debited the sum to the P L Account. In response thereto the assessee submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has furnished all information and explanations and all further details as requisitioned by the AO during the course of scrutiny assessment proceedings and soon after the Revisional Authority pointed out the mistake committed by the assessee it readily agreed to offer the same as income, which in itself shows that a mistake cropped up in the accounts by oversight and even the AO has also committed the same mistake by scrutinising the return of income while completing the assessment under section 143(3) of the Act. Since full particulars of all additions and deductions in the fixed assets and depreciation working were furnished before the AO, it cannot be stated that there is deliberate and intentional act on the part of the assessee to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anation offered by it nor there is any finding that the explanations submitted by the appellant is false or incorrect. In short making a wrong claim by mistake or due to error in accounting entry is not at par with concealment of giving of inaccurate information which may call for levy of penalty u/s. 271(1)(c) of the IT Act. 5.2 Appellant further argued that after the judgement in Dharmendra Textiles, the department took the view that penalty u/s. 271(1)(c) is automatic on an addition or disallowance made in the assessment order but the said argument was negatived by the Hon'ble SC in the case of Atul Mohan Bindal 317 ITR 19 (SC) and appellant has also relied upon the decisions of the Supreme Court Judgment in the case of CIT Vs. Relianc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished inaccurate particulars of income which would amount to concealment of income. 8. Per contra the learned counsel for the assessee relied upon the decision of the Apex Court in the case of Reliance Petroproducts (supra) to submit that the expression inaccurate signifies a deliberate act or omission on the part of the assessee whereas, in the instant case, there was no malafide intention on the part of the assessee to furnish inaccurate particulars; in fact page 7 of the paper book shows that the assesse categorically mentioned that it is loss on sale of fixed assets which missed the attention of both the assessee as well as the AO while completing the assessment under section 143(3) of the Act. He, therefore, submitted that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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