2016 (6) TMI 600

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..... ion that the claim made by the assessee was not sustainable in law. A bonafide raising of a wrong claim by itself would not give rise to penalty. Supreme Court in the case of Reliance Petroproducts Pvt.Ltd. (2010 (3) TMI 80 - SUPREME COURT ) held that where there is no concealment of particulars of income or the assessee has not furnished inaccurate particulars of income, penalty cannot be imposed. It was held that submitting incorrect claims in law do not give rise to penalty proceedings. - Decided in favour of the assessee
MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE APPELLANT : MR Harnish V Darji for MR. PRANAV G DESAI, ADVOCATE FOR THE OPPONENT : MR B S SOPARKAR, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE AKIL KUR .....

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..... tion, the issue again reached the Tribunal. The Tribunal deleted the penalty making following observations: "24. Rival submissions were considered. The issue under consideration is legal issue and at the most can be considered highly debatable. The assessee has disclosed full facts before lower authorities and only question is about the quantum of deduction is available to the assessee. In the present set of facts, the assessee is squarely covered by the decision of the Hon'ble Supreme Court in the case of Reliance Petroproducts Pvt. Ltd. (supra) and therefore penalty cannot be sustained. Even otherwise on merits of the case, we have held in the quantum order in appeal No.63/Rjt/2013 that the assessee is entitled to succeed on the basi .....

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..... the assessee. All facts were on record to enable the Assessing Officer to make addition if he was of the opinion that the claim made by the assessee was not sustainable in law. A bonafide raising of a wrong claim by itself would not give rise to penalty. Supreme Court in the case of Reliance Petroproducts Pvt.Ltd. (Supra) held that where there is no concealment of particulars of income or the assessee has not furnished inaccurate particulars of income, penalty cannot be imposed. It was held that submitting incorrect claims in law do not give rise to penalty proceedings. 7. In the case of Sambhav Media Ltd. (supra), this Court relying on the decision of the Supreme Court in the case of Reliance Petroproducts Pvt. Ltd. (supra) held as under: .....

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