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TMI Blog2019 (5) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty. When all material facts relevant to the said claim were placed on record, the presence or absence of commercial instinct in a given case is a matter of inference. Such adverse inference against assessee would not attract imposition of penalty. The claim of expenditure towards interest made at best be taken as erroneous claim by the assessee. Such claim made in a bonafide manner cannot lead imposition of penalty. Although such claim may not be maintainable for the purposes of quantum proceedings however, in the absence of any falsity per se in such claim, making an incorrect claim for deduction is not at par with concealment or inaccurate particulars of income. Decision in the case of CIT vs. Dalmia Dyechem Industries Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, It is submitted that on the facts and circumstances of the case, no penalty is leviable, as there is not any concealment of income on the part of the assessee. Therefore the penalty so levied u/s 271(1)(c) of ₹ 12.13,525/- be deleted. 2. The Commissioner of Income Tax (Appeals) has erred in imposing penalty u/s 271(1)(C) of ₹ 12.13.525/- on the- addition confirmed by CIT(A) of ₹ 33,99,231/- on account of disallowance of proportionate interest expenses of ₹ 33,99.231/- merely by not accepting the explanation given by the appellant during the course of Appellate proceedings. It is submitted that it is a purely a matter of difference of opinion in interpretation of facts of the case explanations gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty so imposed. 5. Further aggrieved, the assessee preferred appeal before the Tribunal. 6. We have considered the rival submissions and perused the orders of the authorities below. The controversy involves imposition of penalty u/s.271(1)(c) of the Act on disallowance on estimated interest expenses in proportion to the corresponding interest free advances given by the assessee. We straightway note that in order to attract penalty u/s.271(1)(c) of the Act, it is necessary that there must be concealment by the assessee of the particulars of his income or furnishing of inaccurate particulars. The disallowance of certain expenditure on estimated basis actually incurred on the grounds of lac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of expenditure towards interest made at best be taken as erroneous claim by the assessee. Such claim made in a bonafide manner cannot lead imposition of penalty. Although such claim may not be maintainable for the purposes of quantum proceedings however, in the absence of any falsity per se in such claim, making an incorrect claim for deduction is not at par with concealment or inaccurate particulars of income. 7. We also take note of the decision of the Hon ble Bombay High Court in the case of CIT vs. Dalmia Dyechem Industries Ltd. Income Tax Appeal No. 1396 of 2013 judgment dated 06.07.2015 to submit that the penalty cannot be imposed unless the action of the assessee per se is dishonest, malafide and amounting to con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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