9911796707
TMI Blog2020 (10) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... sue is that the Ld. CIT (A) has erred in deleting the penalty levied by the Ld. AO for Rs. 2,07,11,990/- invoking the provisions of section 271(1)(c) of the Act. 3. The brief facts of the case are that the assessee is a private limited Company engaged in the business of setting up multi product Special Economic Zone filed its return of income on 27/09/2008 admitting NIL income. Subsequently, the case of the assessee was taken up for scrutiny and the assessment was completed vide order dated 24/12/2010. During the course of scrutiny assessment proceedings, it was observed by the Ld. AO that the assessee company had obtained huge amount of secured loan viz., Rs. 375 Crs on 31/3/2008. Out of the aforesaid loan, the assessee company had made f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom other source". While holding so, the Ld. AO relied on the decision of the Hon'ble Apex Court in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd vs. CIT (1997) 227 ITR 172, Kedar Narain Singh vs. CIT reported in 6 ITR 167 and the decision of the Indore Bench of the Tribunal in the case of Manideep Engg. & Packaging Industries (P) Ltd vs. Dy. CIT reported in 77 ITD 307. Accordingly, the ld. AO assessed the income of the assessee under the head "income from other source" for Rs. 6,09,35,544/- and further initiated penalty proceedings U/s. 271(1)(c) of the Act. Thereafter the Ld. AO held that the assessee had concealed the particulars of income because the interest earned from the fixed deposit was not included as income under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the nature of a capital receipt and was required to be set off against preoperative expenses. There are many other decisions of various Courts and Tribunals which support the aforementioned view while there is also many a decision supporting the contrary law. 4.14. The aforesaid discussion clearly points out that the issue in hand is debatable. 4.15. Given the above facts and circumstances, there is no doubt about the fact that penalty in this case is not impossible. Accordingly, the same is ordered to be cancelled." 4.5. Since the facts are identical in the current year also, following the principle of stare decisis, I too hold that the issue at hand is debatable and no information had ever been cancelled by the appellant. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the return was found to be incorrect or inaccurate. It was not as if any statement made or any detail supplied was found to be factually incorrect. Hence, at least, prima facie, the assessee could not be held guilty of furnishing inaccurate particulars. The revenue argued that submitting an incorrect claim in law for the expenditure on interest would amount to giving inaccurate particulars of such income. Such cannot be the interpretation of the concerned words. The words are plain and simple. In order to expose the assessee to the penalty unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By any stretch of imagination, making an incorrect claim in law cannot tantamount to furnishing of inaccu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ypes amount to concealment of particulars of one's income as well as furnishing of inaccurate particulars of income. Such contention could not be accepted as the assessee had furnished all the details of its expenditure as well as income in its return, which details, in themselves, were not found to be inaccurate nor could be viewed as the concealment of income on its part. It was up to the authorities to accept its claim in the return or not. Merely because the assessee had claimed the expenditure, which claim was not accepted or was not acceptable to the revenue, that, by itself, would not attract the penalty under section 271(1)(c). If the contention of the revenue was accepted, then in case of every return where the claim made was n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
