9911796707
TMI Blog2022 (7) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that co-operative banks were entitled to claim deduction only from assessment year 2007-08 and not for years prior to assessment year 2007-08. Thus, it is a case of mere disallowance of claim under particular section of the Act, there is no finding by the AO, as to what particulars filed by the assessee and found to be inaccurate. It is settled position of law that mere disallowance of claim on legal ground does not entail levy of penalty under the provisions of section 271(1)(c) of the Act as laid down by the Hon ble Supreme Court in the case of CIT vs. Reliance Petroproduct (P) Ltd.[ 2010 (3) TMI 80 - SUPREME COURT] - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) Wrong provision for overdue interest at Rs.13,23,80,669/- (ii) Wrong deductions claimed u/s 36(1)(viia) at Rs.2,17,36,000/- 5. Being aggrieved by the above assessment order, an appeal was filed before the CIT(A) contesting the above additions, who vide order dated 08.11.2016 had deleted the addition on account of overdue interest of Rs.13,23,80,669/- but sustained the addition on account of disallowance of claim for deduction u/s 36(1)(viia) of Rs.2,17,36,000/-. On receipt of the order of CIT(A), the AO has initiated penalty proceedings u/s 271(1)(c) of the Act for addition made on account of disallowance of claim for deduction u/s 36(1)(viia) of Rs.2,17,36,000/-. In response to the show cause notice, the appellant had not filed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, there is no finding by the AO, as to what particulars filed by the assessee and found to be inaccurate. It is settled position of law that mere disallowance of claim on legal ground does not entail levy of penalty under the provisions of section 271(1)(c) of the Act as laid down by the Hon'ble Supreme Court in the case of CIT vs. Reliance Petroproduct (P) Ltd. (supra). The relevant findings are extracted below: "9. ….. We have already seen the meaning of the word "particulars" in the earlier part of this judgment. Reading the words in conjunction, they must mean the details supplied in the Return, which are not accurate, not exact or correct, not according to truth or erroneous. We must hasten to add here that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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