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TMI Blog2024 (6) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... tal gain and whatsoever the additional interest earned by the assessee are being utilized only in purchasing new assets. As relying on RELIANCE PETROPRODUCTS PVT. LTD. [ 2010 (3) TMI 80 - SUPREME COURT] it is clear that mere claim does not sustainable in law by itself will not amount to furnishing of inaccurate particulars of income, therefore, additions made by the Assessing Officer relating to prior period and ad hoc disallowance are concern, it is merely claimed by the assessee as allowable expenses and, however, was rejected by the Assessing Officer, therefore, this cannot be a reason for levy of penalty. Additional construction indexed costs of improvement by the assessee - As noticed that assessee having 1/4th share in the property ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... improvement and Assessing Officer observed that assessee has obtained valuation report from the registered valuer and as per the value determined, total value of cost of construction and improvement at Rs. 1,28,14,764/- and relevant indexed cost of construction and improvement at Rs. 6,21,20,000/-. The assessee having 1/4th share in the property, therefore, as per the valuation report submitted by the assessee, the indexed costs of construction and improvement which comes to Rs. 1,55,30,000/- whereas the assessee has claimed Rs. 1,71,12,909/-. The difference of the above amounts were disallowed. (d) Further the Assessing Officer observed that the valuation report submitted by the assessee was not supported by any bills or vouchers raised on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w and facts of the case. 2) That the Learned National Faceless Appeal Center has grossly erred in law and on facts in confirming the penalty of Rs 6,91,583/- u/s 271(1)(c) of the Act. 3) That the Learned National Faceless Appeal Center has grossly erred in confirming the levy of penalty under section 271(1)(c) by equating the addition/ disallowance made by the Assessing Officer on account of excess claim of construction/ improvement and claim of prior period expenses as giving rise to automatic levy of penalty in view of explanation 1 to section 271(1)(c) which is not sustainable in law and facts of the case. 4) That the Learned National Faceless Appeal Center has grossly erred in quoting out of context the selective portions of observation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. On the other hand, the Ld. DR supported the findings of the lower authorities. 10. Considered the rival submissions and material placed on record, I observed that Assessing Officer has levied the penalty on the disallowance made by him relating to disallowance of prior period expenditure, ad hoc disallowance of non filing of relevant documents in relation to valuation on costs of construction improvement and as per the statements of the assessee, assessee has inadvertently claimed the higher share of indexed costs of construction and improvement. It is submitted that the assessee has not benefited by inadvertently claiming the excess indexed costs of improvement. In this regard, he brought to our notice that assessee has made investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on that if the notice under section 148 of the Act was not issued, then assessee would have got away with the tax evasion and, therefore, penalty was levied. The spirit of section 271(1)(c) of the Act says concealment of income or furnishing of inaccurate particulars of income . Now the judicial pronouncements are absolutely clear that if in the return of income certain mistake is there, which is bona-fide and there is also no loss to the Revenue, then in the absence of any material on record, we cannot come to the conclusion that assessee has deliberately concealed the income or has furnished inaccurate particulars of income. In the instant case, nothing is on record to show that there was any malafide intention on the part of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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