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TMI Blog2015 (10) TMI 1427X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer and upheld by the appellate authorities will not amount to concealment of income or furnishing of inaccurate particulars of income of the assessee. In view of the above, in our opinion, the CIT(A) rightly cancelled the penalty relying upon the decision of Hon'ble Apex Court in the case of CIT Vs. Reliance Petroproducts Pvt. Ltd, reported in [2010 (3) TMI 80 - SUPREME COURT] - Decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring and sales of various chemicals. For Assessment Year 1985-86, the assessee claimed the payment of commission to M/s. Somnath Chemicals of ₹ 6,60,629/-; while in the Assessment Year 1986-87 it had claimed payment of commission of ₹ 8,07,250/- to M/s. Somnath Chemicals. The Assessing Officer disallowed the commission in both the years which is sustained by the CIT(A) as well as ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of M/s. Somnath Chemicals before the Assessing Officer. However, the assessee pointed out before the Assessing Officer that M/s. Somnath Chemicals has stopped its business since 1987. He also pointed out that on enquiry made by Assessing Officer during assessment proceedings for Assessment Year 1984-85, M/s. Somnath Chemicals replied directly to Assessing Officer that they were selling the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld as under:- Where there is no finding that any 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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