TaxTMI 
TaxTMI 
2015 (12) TMI 775
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....d upon the appellant for making a claim that exchange gain made upon cancellation of a forward contract made in connection with acquisition of plant and machinery being imported for setting up a new factory was a capital receipt and purported findings of the Tribunal upholding the imposition of penalty and reversing the order of the Commissioner of Income Tax (Appeals) are arbitrary, unreasonable perverse?" The fact of the case is that the assessee filed its return showing total income of Rs. 9,81,75,426/-. The case was assessed under Section 143(3) on a total income of Rs. 11,32,19,669/-. In the assessment order, an addition of Rs. 52,90,499/- was made by treating profits on cancellation of forward foreign exchange contract as trading r....
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....re of this receipt as revenue receipt. This is proved by intention of the assessee to adjust the income with revenue expenses and to debit net revenue expenses. Had it been the case of capital receipt in the mind of assessee, it could have not been adjusted with revenue item. Had this case not been scrutinized u/s. 143(3), the assessee could have taken the benefit and such deduction could have been allowed. This to conclude, the assessee furnished inaccurate particulars and concealed the particulars of its income by claiming wrong and false deduction in computation knowing very well that the amount earned by it was revenue receipt." Aggrieved by the order of penalty, the assessee preferred an appeal which was allowed by the CIT(....
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....this amount with bank charges, and only net bank charges had been debited. The quantum appeal has been decided against the assessee. We are of the view that after the insertion of Explanation I to Section 271 (1)(c), the requirement that the department should establish that there has been a conscious concealment of particulars of income or a deliberate failure to furnish accurate particulars, is no longer necessary. In case the Additions are made and the explanation submitted by the assessee is not satisfactory, the income should be treated as deemed concealment. According to us the words "inaccurate particulars" would cover both falsity in the final figure as also in the constitution adamants which are inaccurate in some specific ....
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....ave been attracted which is not the case in hand. Mr. Khaitan has relied on the judgement of the Supreme Court in C.I.T. vs. Reliance Petroproducts Pvt. Ltd. : 322 ITR 158 (SC) and on an unreported judgment of this Court passed on 9th April, 2015 in ITA 820 of 2008 [C.I.T., Central-II, Kol. Vs. M/s. M.K. Shah Exports Ltd.] wherein the judgement in CIT vs. Reliance Petroproducts Pvt. Ltd.[supra] has been relied on. Mr. Bhowmick, learned advocate appearing for the respondent, relying on the judgment in CIT vs. Bijay Iron Stores : 252 ITR 408 [Cal.] submits that as the assessee had shown the receipts attributable as revenue receipt and as there was no proper explanation, the Tribunal was justified in passing the order under challenge. It....
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....amount to furnishing inaccurate particulars regarding the income of the assessee. Such claim made in the return cannot amount to the inaccurate particulars. ........................We do not agree, as the assessee had furnished all the details of its expenditure as well as income in its return, which details, in themselves, were not found to be inaccurate nor could be viewed as the concealment of income on its part. It was up to the authorities to accept its claim in the return or not. Merely because the assessee had claimed the expenditure, which claim was not accepted or was not acceptable to the Revenue, that by itself would not, in our opinion, attract the penalty under section 271(1)(c). If we accept the contention of the Reve....