TaxTMI 
TaxTMI 
2013 (4) TMI 697
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....f Income-tax, Circle-9, Kolkata, under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for the assessment year 2006-07, vide his order dated November 5, 2008. Penalty in dispute was levied by the Assistant Commissioner of Income-tax, Circle-9, Kolkata, under section 271(1)(c) of the Act, vide his order dated May 29, 2009. 2. The only issue in this appeal of the Revenue is against the order of the Commissioner of Income-tax (Appeals) deleting the penalty levied under section 271(1)(c) of the Act by the Assessing Officer on the claim of depreciation. For this, the Revenue has raised following three grounds : ....
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.... vide order dated November 5, 2008 by the Assessing Officer. The Assessing Officer while completing assessment made disallowance of depreciation at Rs. 3,80,692 on the ground that machinery were not put to use during the year. The Assessing Officer further allowed additional depreciation on xerox machine and also payment of provident fund under section 43B of the Act. The Assessing Officer initiated penalty proceedings and also imposed penalty relying on the decision of the hon'ble Supreme Court in the case of Union of India v. Dharamendra Textile Processors [2008] 306 ITR 277 (SC). Before the lower authorities including the Assessing Officer during the course of assessment proceedings, during penalty proceedings and even before the Com....
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....tion of inviting the penalty under section 271(1)(c) of the Act. A mere making of the claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such claim made in the return cannot amount to the inaccurate particulars. It was tried to be suggested that section 14A of the Act specifically excluded the deductions in respect of the expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. It was further pointed out that the dividends from the shares did not form the part of the total income. It was, therefore, reiterated before us that the Assessing Officer had correctly reached the conclusion that....
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....the aforementioned decision which pertained to the penalty proceedings under the Tamil Nadu General Sales Tax Act, the court had found that the authorities below had found that there were some incorrect statements made in the return. However, the said transactions were reflected in the accounts of the assessee. This court, therefore, observed (page 251) : 'So far as the question of penalty is concerned the items which were not included in the turnover were found incorporated in the appellant's account books. Where certain items which are not included in the turnover are disclosed in the dealer's own account books and the assessing authorities includes these items in the dealer's turnover disallowing the exemption, penalty....