TaxTMI 
TaxTMI 
2014 (12) TMI 1160
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.... not be having any objection to the condonation of delay in this case. In this view of the matter we condone the delay. 3. The issue raised in this appeal is that the ld. CIT(A) has erred in levying penalty u/s 271(1)(c) of the Act amounting to Rs. 4,49,137/- without considering the fact that the assessee has concealed its income by not showing the same u/s 45(1A) in spite of its known facts. 4. The brief facts of the case are as under :- In the case of the appellant assessment u/s 143(3) was framed by disallowing loss on fire of Rs. 3129870/-. The appellant had claimed such loss as a expense and debited the same in the profit and loss account. The loss on fire was in respect of capital assets used for the business of the appellant on wh....
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.... referred to the decision of the Hon'ble Supreme Court in the case of Dharmindra Textile vs CIT and imposed penalty of Rs. 4,49,137/-. 6. The ld. CIT(A) deleted the penalty by observing as under : "The assessee has disclosed the loss on fire on the profit and loss account, has filed audit profit and loss account along with computation of income and the loss on fire is ascertainable from the records. The assessee has not concealed any income or furnished inaccurate particulars of income. The addition on loss on fire made by the AO has been deleted by the CIT(A) and again confirmed by the Honourable Tribunal. The additions has been a matter of dispute by discussion of various case laws and the provisions of section 45(1A) and section 32(1) ....
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....1(1)(c) the conditions therein need to be satisfied. The AO has not satisfied the conditions for imposing penalty and the assessee's case does not warrant levy of penalty u/s 271(1)(c). The penalty imposed by the AO is deleted. The appeal of the assessee is allowed." Against the above order the revenue is in appeal before us. 7. We have heard both the counsel and perused the records. We find that section 271(1)(c) of the Act postulates levy of penalty for furnishing inaccurate particulars and concealment of income. In the present case we find there was no furnishing of inaccurate particulars and concealment of income. The assessee has suffered loss on fire. It was duly disclosed in the Profit and loss account and in the audit report. AO d....
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....ound 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. 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. When such particulars are found to be inaccurate, the liability would arise. To attract penalty, the details supplied in the return must not be accurate, not exact or correct, not according to the truth or ....