TaxTMI 
TaxTMI 
2013 (5) TMI 195
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....n the circumstances of the case, the ld. CIT(A) has erred in deleting the penalty of Rs.25,21,228/- imposed by the Assessing Officer. (ii) On the facts and in the circumstances of the case, the ld. CIT(A) has erred in not appreciating the fact that claiming excessive deductions also amount to concealment of income as held in various judicial pronouncements." 2. Briefly stated, the facts giving rise to this appeal are that the assessee filed a return of income declaring loss of Rs.71,32,466 on 17.11.2003. The appellant claimed the status of local authority, however, in view of amendments carried out to section 10(20) of the Act, the status of local authority was denied to the assessee and the assessment was completed taking the status of th....
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.... particulars of income. However, the Assessing Officer did not accept the explanation of the appellant and imposed a penalty of Rs.25,21,228/- on the appellant with a finding that the assessee has furnished inaccurate particulars of its income. Being aggrieved by the above penalty order, the assessee filed an appeal before the Commissioner of Income Tax(A) on the ground that the ld. Assessing Officer failed to appreciate the fact that the appellant had neither concealed particulars of its income nor had filed inaccurate particulars of its income. It was also contended by the assessee that the Assessing Officer also failed to appreciate that merely because some of the expenses debited to Profit & Loss account as revenue were later treated as....
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....he details supplied in the return must not be accurate, not exact or correct, not according to the truth or erroneous. Where there is no finding that any details supplied by the assessee in its return are found to be incorrect or erroneous or false there is no question of inviting the penalty under section 271(1)(c). A mere making of a claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such a claim made in the return cannot amount to furnishing inaccurate particulars." 4. We have heard rival contentions of both the parties and carefully perused the record and all relevant citations placed before us. Ld. DR submitted that the Commissioner of Income Ta....
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.... income cannot be attributed to the assessee. Therefore, the Commissioner of Income Tax(A) rightly followed the judgment of Reliance Petro products (supra) and granted relief to the assessee. The counsel for the assessee supported the impugned order and submitted that this appeal of the revenue is devoid of merits. 5. On careful consideration of the peculiar facts and circumstances of the case, we observe that on the second round of quantum proceedings before the Assessing Officer, the Assessing Officer held that the claim of the assessee pertaining to the development expenditure was not revenue in nature and the Assessing Officer made a disallowance of Rs.72,03,511 by holding the same as capital expenditure on which the Assessing Officer ....