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TMI Blog2019 (5) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... if the Assessing Officer does not accept a claim of the assessee that will not ipso facto be a reason to initiate penalty proceedings. We note that assessee has agreed for the said treatment in the assessment proceedings. It is also the plea of the assessee that the said accounting treatment can be said to be an inadvertent error. In these circumstances also assessee deserves to succeed on the touchstone of Hon'ble Apex court decision in the case of Price Waterhouse Cooper [ 2012 (9) TMI 775 - SUPREME COURT] Another limb of the assessee s plea is that Assessing Officer has mentioned that assessee has furnished inaccurate particulars of income in the assessment order. While in the penalty order Assessing Officer is not sure of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,49,339/- 2011-12 3,49,339/- 2012-13 47,372/- 2. The learned counsel of the assessee has challenged the confirmation of the penalty on both the grounds - lack of the specification of charge for the levy of penalty and also on merits of levy of penalty. 3. Brief facts of the case leading to the levy of penalty are that assessee is the builder and developer. In the assessment completed under section 153A of the Act, the assessing officer found that the assessee has adjusted the interest earned on fixed deposit with the interest paid and has adjusted the resultant amount in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or concealment of income. Hence learned counsel of the assessee submitted that the penalty levied is bad in law and cannot be sustained. As regards merits of the levy of penalty the learned counsel of the assessee submitted that assessee has made a claim. If the same is not accepted it cannot be taken as reason to initiate penalty proceedings. He submitted that assessee s accounting of interest is not ex facie bad. In this regard he placed reliance upon the decision of Hon'ble Apex Court in the case of Karnal Co-op. Sugar Mills Ltd. 118 Taxman 489. He further submitted that in the assessment proceeding itself assessee has accepted the assessing officers addition. Hence learned counsel submitted that assessee should not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Hon'ble Apex Court in the case of Karnal Co-op. Sugar Mills (supra). Hence, it is the plea of the assessee that assessee s conduct was bonafide. In these circumstances, in our considered opinion the assessee s accounting was not totally unacceptable the same cannot lead to levy of penalty u/s. 271(1)(c). In this regard, Hon'ble Apex Court decision in the case of Reliance Petroproducts (supra) supports the case of the assessee. In this case it was held by Hon'ble Apex Court that if the Assessing Officer does not accept a claim of the assessee that will not ipso facto be a reason to initiate penalty proceedings. 10. Furthermore, we note that assessee has agreed for the said treatment in the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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