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TMI Blog2024 (7) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... ;ble Supreme Court in the case of the CIT Vs. Reliance Petro Products (P.) Ltd.[ 2010 (3) TMI 80 - SUPREME COURT] wherein held that making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars. Therefore, it is obvious that it must be shown that the conditions u/s 271(1)(c) must exist before the penalty is imposed. In this case assessee is maintaining the separate books of accounts for all his proprietorship concerns where the expenditures are debited separately; the fund flow statement indicates that the investments have been made from own capital and same is reflected in the personal balance sheet; Interest payments are made to finance company for the purchase of trucks etc. which were used for business of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Member And Shri. Raj Kumar Chauhan, Judicial Member For the Assessee : Ms. Dinkle Haria For the Department : Shri. Ashok Kumar Ambastha Sr. AR ORDER PER RAJ KUMAR CHAUHAN (J.M.): 1. This appeal is filed by the appellant/assessee against the order dated 14.02.2024 of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the CIT(A) ], passed under section 250 of the Income Tax Act, 1961 [hereinafter referred to as the Act ] for the A.Y. 2009-10, has been challenged on the grounds as culled out from memorandum of appeal/grounds of appeal: - a. That the Ld. CIT(A) was erred in not granting proper, effective and fair opportunity of being heard while passing the appellate order, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing officer, the assessee before the Ld. CIT(A) who vide order dated 27.12.2012 dismissed the appeal of the assessee before the Ld. CIT(A) and upheld the order of Assessing Officer. The assessee preferred appeal before the Hon ble ITAT, wherein the vide order dated 14.07.2017 set aside the order of the Ld. CIT(A) and restored the matter to file of the Ld. AO with specific directions to the Ld. AO that before the finalization of the assessment, the Ld. AO will provide proper opportunity to the assessee to file necessary documents and accounts etc. including the fund flow statement, if any as per law. 4. Accordingly, the assessee was granted an opportunity as per the directions of the Hon ble ITAT to explain with sufficient evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as passed determining the total income of the assessee at Rs. 1,11,90,270/-. 6. The penalty proceedings u/s. 271(1)(c) of the Act were also initiated on 14.12.2018 for concealment of income/furnishing inaccurate particulars of income. The assessee in response to the penalty show cause notice has clarified that the penalty is not attracted on estimated addition; that the assessee had kept separate person for shares accounting etc and same was submitted at the time of hearing but due to the expensive litigation the assessee has not been able to challenge the quantum of additions in appeal. 7. After considering the submissions of the assessee with respect to the penalty proceedings, it was observed by the Ld. AO that addition is on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome. However, the submissions of the assessee were accepted to the effect that the assessee has sufficient own funds for investment and interest expenditure was not available for working of the disallowance within the meanings of provisions of Section 14A r.w.r. 8D. Therefore, the penalty has been imposed because the assessee has neither made any disallowance u/s. 14A nor computation of income for administrative expenses/indirect common expenses incurred in relation to earn exempt income. 12. What is concealment of income or inaccurate particulars of such income as contemplated by Section 271(1)(c), has been explained by the Hon'ble Supreme Court in the case of the CIT Vs. Reliance Petro Products (P.) Ltd. as reported in 322 ITR 158 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... document, where the assessee can furnish the particulars of his income. 13. We have examined the case of the assessee in view of the observation of the Hon'ble Supreme Court in the above case. It is to be noticed that the assessee is maintaining the separate books of accounts for all his proprietorship concerns where the expenditures are debited separately; the fund flow statement indicates that the investments have been made from own capital and same is reflected in the personal balance sheet; Interest payments are made to finance company for the purchase of trucks etc. which were used for business of the assessee; direct expenditure for earning exempt income has been debited to his personal accounts. Above submissions and the explana ..... X X X X Extracts X X X X X X X X Extracts X X X X
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