2013 (3) TMI 75

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....the Tribunal's order dated 25.05.2012 in ITA No. 1589/Del/2005 pertaining to the assessment year 2001-02. It arises out of the penalty order passed by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961. A penalty of Rs. 18,79,303/- had been imposed upon the respondent. The Commissioner of Income Tax (Appeals) confirmed the penalty, which had been deleted by the Tribunal by v....

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....of Rs. 1,03,61,340/- claimed by the assessee /respondent. 3. The learned counsel for the respondent pointed out that the Tribunal had placed reliance on the decision in the case of CIT v. Reliance Petroproducts Private Limited: 322 ITR 158 (SC) wherein it was held that mere making of a claim, which is not sustainable in law, would not, ipso facto, amount to furnishing inaccurate particulars reg....

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....able to penalty under Section 271(1)(c) of the Act. Therefore, the issue to be examined in the present case is whether the claim made by the assessee is wholly without any basis and the explanation furnished by the assessee for making such a claim is not bonafide. 5. The learned counsel for the respondent pointed out that the reason for making the claim in the manner indicated above was that th....