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TMI Blog2021 (12) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... and same cannot tantamount to filing without good faith and due diligence - HELD THAT:- We do not find any infirmity in the above observation of the learned ITAT. As held by the Supreme Court in Commissioner of Income Tax, Ahmedabad vs. Reliance Petroproducts Pvt. Ltd., [ 2010 (3) TMI 80 - SUPREME COURT] for the purpose of invoking Section 271(1)(c) of the Act, there has to be a concealment of particulars in the income of the assessee and the assessee must have furnished inaccurate particulars of his income. Making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars under Section 271(1)(c) of the Act. Mere making of a claim which is not sustainable in law, by itself, will not tantamount to furnishing inacc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... systems ( CVPS ), their maintenance and providing SIM card systems to telecommunication operators. The respondent also renders software development agreements, wherein it develops software applications software(s) for G D GmbH. As a part of this, the respondent is also engaged in the business development of smartcard-related applications. 4. The respondent filed its return of income for the relevant AY. Pursuant to the order of the Transfer Pricing Officer and subsequently the Dispute Resolution Panel, the Assessing Officer made an addition of ₹ 25,31,59,381/- (Rupees Twenty Five Crores Thirty One Lakhs Fifty Nine Thousand Three Hundred Eight One) to the returned income, making the following adjustments: i) Provision for sof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fide on part of the respondent, making it liable to levy of penalty. 9. The learned counsel for the appellant further submits that the TP documentation of the respondent for provision of software development services segment and purchase of raw material for SIM card assembly segment are faulty, misleading and prepared without proper care, which also clearly proves that there was lack of good faith and diligence on part of the respondent, making it liable to levy of penalty. 10. We have considered the submissions made by the learned counsel for the appellant, however, find no force in the same. 11. The learned ITAT in its impugned order has recorded that prior to 2007, there was a legal debate as to whether multiple-year data can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the learned ITAT. As held by the Supreme Court in Commissioner of Income Tax, Ahmedabad vs. Reliance Petroproducts Pvt. Ltd., (2010) 11 SCC 762, for the purpose of invoking Section 271(1)(c) of the Act, there has to be a concealment of particulars in the income of the assessee and the assessee must have furnished inaccurate particulars of his income. Making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars under Section 271(1)(c) of the Act. Mere making of a claim which is not sustainable in law, by itself, will not tantamount to furnishing inaccurate particulars regarding income of the assessee. Merely because, the assessee had claimed an expenditure, which claim was not accepted or was not acceptabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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