2016 (3) TMI 646

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.... Tax Act, 1961 (hereinafter called 'The Act') amounting to Rs. 77,01,000/-. 2. The assessee is a state government owned corporation engaged in the business of generation of hydro-electricity. The assessee had filed its return of income for assessment year 2005- 06 on 31.10.2005 declaring a net loss of Rs. 3,22,05,196/-. The assessment was completed at an income of Rs. 29,72,49,029/-. Penalty was imposed u/s 271(1)(c) of the Act with reference to disallowance of Rs. 2,10,44,890/- pertaining to depreciation claimed by the assessee on assets acquired out of grant and subsidies received from the state government. It is an accepted fact that the assessee withdrew the ground of appeal relating to the impugned addition before the Ld. CIT(A). ....

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....e rival submissions and carefully perused the relevant material placed on record. Penalty under section 271(l)(c) is leviable in cases where the assessee has either concealed its income or furnished inaccurate particulars of income. Merely because the claim of the assessee has not been accepted, does not ip-so-facto warrant levy of penalty under section 271(l)(c) of the Act. 6. The Hon'ble Supreme Court of India in the case of CIT, Ahemdabad Vs. Reliance Petroproducts Pvt. Ltd. (supra), while referring to the word particulars in "inaccurate particulars of income", observed, "as per Law 'Lexicon, the meaning of word 'particular' is a detail or details, the details of a claim, or the separate items of an account. Therefore, the wor....

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.... of the Act. It was also laid down by the Court that the intendment of the Legislature is not to levy penalty u/s 271 (l)(c) of the Act in case of every non acceptance of claim made by the assessee in the return of income. 8. The Hon'ble Supreme Court in CIT Vs Reliance Petroproducts P. Ltd. (supra) further held as under : Reading the words "inaccurate" and "particulars" in conjunction, they must mean the details supplied in the return, which are not accurate, not exact or correct, not according to truth or erroneous. In this case, there is no finding that any details supplied by the assessee in its return were found to be incorrect or erroneous or false. Such not being the case, there would be no question of inviting the pe....