2014 (4) TMI 476

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....nt : Shri Ashutosh Jain and Shri Amit Arora, CAs. ORDER Per G. D. Agrawal, VP :- This appeal by the Revenue is directed against the order of learned CIT(A)-II, Dehradun dated 19th December, 2011 for the AY 2006-07. 2. Ground No.1 raised by the Revenue reads as under:- "Whether on facts and circumstances of the case, the CIT(A) had erred in deleting the penalty imposed under section ....

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....as under:- "The assessee is a company incorporated under the laws of the United Kingdom had filed its return of income on 23.10.2006 declaring loss of Rs.7,96,49,700/-. Assessment was completed u/s 143(3)/144C(13) of the Income Tax Act, 1961 on 22.10.2010 at a loss of Rs.54,51,48,532/- as under: Income as per P/L account (405,809,146) Add :   Depreciation as per books of acc....

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....ssing Officer determined the loss at Rs. 54,51,48,532/-. From the adjustment made, which is evident from the relevant portion of the penalty order which is reproduced above, we find that though the certain disallowances were made under Section 40(a) and 40(a)(i), however, the set off given by the Assessing Officer on account of disallowances made in the preceding year was much more than the disall....

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....held as under:- "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 taking 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 i....