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TMI Blog2024 (8) TMI 1426X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred as Ld. First Appellate Authority or in short Ld. 'FAA') in Appeal No.CIT(A), Delhi-36/10011/2018-19 arising out of the appeal before it against the order dated 23.03.2018 passed u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred as 'the Act'), by the Addl. CIT, Special Range-5, New Delhi (hereinafter referred to as the Ld. AO) and the appeal preferred by the Revenue is against the order dated 11.01.2016 of the Commissioner of Income Tax (Appeals)-44, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. 'FAA') in Appeal No.37/2014-15/CIT(A)- 44 arising out of the appeal before it against the order dated 25.04.2014 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty order, it comes up that assessee filed return declaring taxable income for A.Y.- 2010-11 of Rs. 20,77,35,912/- which was e-filed on 15/10/2010 & revised income of Rs. 21,45,81,319/- on 14.06.2011. Assessment u/s 143(3) of the I.T, Act, 1961 was completed on 25.04.2014 at income of Rs. 29,92,79,900/- with the following additions as under: - (i) Addition on account of TPO adjustment Rs. 7,39,83,986/- (ii) Disallowance on account of provision for sales tax concession Rs. 1,04,39,001 /- (iii) Disallowance on account of excess depreciation claimed Rs. 2,75,583/- 3.1 The CIT(A) has sustained the penalty on account of alleged willful furnishing of inaccurate particulars of sales tax concession. The claim of assessee is that there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and pending disposal by the honorable High Court, as the matter of prudence and caution, the company created a total provision of Rs. 75,573 thousand represents provision created during F Y 2008- 09 in respect of the sales tax benefit availed (and the same was duly disallowed while preparing the income tax return of A Y 2009-10) and balance of Rs. 31,316 thousand represents created during FY 2009-10 for interest liability that the company may suffer, in case the High Court decides the matter against the Company." 4.1 The reply of the assessee has been considered. The assessee has made a provision for sales tax concession of Rs. 3,13,16,000/-. As per the assessee's own submission the matter is sub judice and the liability has not crysta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age of the Income-tax returns, are picked up for scrutiny. If the assessee makes a claim which is not only incorrect in law but is also wholly without any basis and the explanation furnished by him for making such a claim is not found to be bona fide, it would be difficult to say that he would still not be liable to penalty under section 271(1)(c) of the Act. If we take the view that a claim which is wholly untenable in law and has absolutely no foundation on which it could be made, the assessee would not be liable to imposition of penalty, even if he was not acting bona fide while making a claim of this nature, that would give a licence to unscrupulous assessees to make wholly untenable and unsustainable claims without there being any basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd.(supra) and Hon'ble Delhi High Court in the case of Zoom Communication (supra), and thus, this was a fit case for levy of penalty for furnishing inaccurate particulars of income u/s 271(1)(c) of the Act. The order of AO on this issue is confirmed. 4. After considering the submissions and the facts as corroborated from the paper book, we are of the considered view that there appears to have been no intent of the assessee to submit inaccurate particulars as alleged and the ld.CIT(A) has sustained the penalty only on presumption that since the assessee is a big organization, the mistake could not have crept. We are of the considered view humans in all organizations are fallible to mistake and only because assessee happens to be an organi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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