2014 (3) TMI 896

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.... on 19.12.2008. The A.O. made following additions: i. Shortage expenses Rs.64,257/- ii. Tanker diesel expenses Rs. 25,15,727/- iii. Transport Expenses Rs. 25,00,000/- iv. Truck running & maintenance Expenses Rs. 5,00,000/- Thus, total addition of Rs.55,79,984/- was made. The ld. A.O. had initiated penalty proceeding u/s. 271(1)(c) for furnishing inaccurate particulars of income. The assessee challenged the quantum addition. Finally, ld. CIT(A) had confirmed following additions under various heads: i. Shortage expenses Rs.64,257/- ii. Tanker diesel expenses Rs. 5,82,679/- iii. Transport Expenses Rs. 10,00,000/- iv. Truck running & maintenance Expenses Rs. 3,04,214/- 2(i). The ld. A.O. gave reasonable opportunity....

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....sidered while deciding the quantum of disallowance. The explanations were not proved to be either bogus or false. It is a fact that penalty was initiated for furnishing inaccurate particulars of income while it was levied under Explanation 1, for concealing the particulars of income. Therefore, considering the above it is held that the assessing officer has not been able to prove that the conditions of explanation 1 to the section are satisfied, the disallowances are best an estimate based on probabilities and on ad hoc basis, concealment of particulars has not been conclusively proved for even part of the expenses claimed. Therefore it is held to be not a fit case for levy of penalty under section 271(1)(c); neither under the main cl....

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....ccurate particulars of his income. The meaning of the word "particulars" used in section 271(1)(c) would embrace the details of the claim made. Where no information given in the return is found to be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars. In order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By no stretch of imagination can making an incorrect claim tantamount to furnishing inaccurate particulars. (emphasis added) There can be no dispute that everything would depend upon the return filed by the assessee, because that is the only document where the assessee can furnish the particulars of his income. ....