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TMI Blog2013 (5) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... leting the penalty u/s 271(1)(c) imposed in assesse's case by ignoring that the assessee had concealed its income chargeable under the provisions of section 28 (iv) of th e Act by wrongly claiming it as exempt. 2. On the facts and in the circumstances of the case and in law, the CIT(A) was not justified in deleting the penalty u/s 271 (1)(c) ignoring that the facts of the assessee's case were distinguishable from those of CIT v/s Reliance Petro Products Ltd.(322 1TR158)( Supreme Court . 3 The assessee had received gift of immovable property being a flat in the Giriraj Co-op Hsg Society from M/s Engineering Mazdoor Sabha. The total cost of the flat including the payment to the Co-op Hsg So, Stamp duty and payments for renovat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alment of income or furnishing of inaccurate particulars of income. 4 Before us, the ld DR has submitted that the assessee has furnished inaccurate particulars of income by claiming the benefit in the shape of immoveable property received from M/s Engineering Mazoor Sabha as exempt income whereas the said benefit has been received by the assessee on account of professional services rendered to M/s Engineering Mazoor Sabha. He has referred the order of the Tribunal whereby the addition made by the Assessing Officer has been confirmed and submitted that the Tribunal had held that the gift has been received because of the services rendered by the assessee to the M/s Engineering Mazoor Sabha and not because of love and affection. He has reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Income Tax(Appeals) while deleting the penalty. 5 Having considered the rival submissions as well as the relevant material on record, we note that the assessee has duly disclosed the gift received in the shape of immovable property being flat from M/s Engineering Mazoor Sabha in the return of income under the category of income claimed exempt. Further, the assessee had specifically shown the gift from M/s Engineering Mazoor Sabha in the capital account as well as final account and the balance sheet. This fact has not been disputed by the revenue and even the Tribunal, while deciding the issue on merit in the quantum appeal, has also taken a note of this fact that the assessee had shown this amount in the capital account as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account for the year ended on March 31, 2002 of the appellant shows that Gift from union EMS valued at Rs,l,96,28,314/- was clearly indicated. 10. The above details show that the appellant had clearly shown the receipt of the gift of the flat at Giriraj, Altamount Road in the return of income for AY 2002 03. However, the appellant was of the opinion that the same is exempt from taxation 11. The Hon'ble ITAT 'C' Bench had in ITA no 1655/Mum/2009 for AY 2002-03 decided the appeal of the appellant against the order of CIT(A) in favour of the department by holding that the sum of ₹ 1,96,28,314/. being the value of immoveable proper received by the appellant as gift is assessable as income under section 28(iv). 12. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. If the contention of the Revenue is accepted then in case of every Return where the claim made is not accepted by the Assessing Officer for any reason, the assessee will invite penalty u/s 27l1c. That is clearly not the intendment of the Legislature. (iii) The law laid down in 729J ITR 519 (SC) as to the meanings of the words conceal and inaccurate continues to be good law because what was overruled in Dharmendra Textile Processors 306 ITR 277 (SC) was only that part in Dilip Shroff were it was held that mens rea was an essential requirement for penalty u/s 271(1)( c) The facts and circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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