TaxTMI 
TaxTMI 
2016 (5) TMI 710
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.... Tax Act, 1961; 2. That the appellant craves leave to add, alter, amend or vary any ground before or at the time of hearing." 2. Brief facts of the case are as under: 2.1. The assessee was engaged in the business of manufacturing and exports of Readymade Garments. The return of income for the A.Y. 2008-09 was filed on 30.09.2008 declaring an income of Rs. 3,63,484/-. The same was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny and the assessment was completed u/s 143(3) vide order dated 30.11.2010 by the AO at the income of Rs. 10,08,934/-. The AO noted in the assessment order passed u/s 143(3) of the Act, dated 30.11.2010 that, during the year under consideration the assessee in its P&L account has sh....
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....object of setting up of unit of manufacturing and export of readymade garments. The AO disallowed the expenses so claimed on the basis that the project could not be implemented; (ii) assessee had claimed depreciation against a property from which rental income was earned for the year under consideration. 6.1. The ld. AR submitted that the claim of expenses as well as depreciation is an error, which is bonafide and unintentional. The ld. AR submitted that the issue is squarely covered by the decision of the Hon'ble Supreme Court in the case of Reliance Petro Products Pvt. Ltd. vs. CIT reported in 322 ITR 158, wherein the Hon'ble Court had held that by no stretch of imagination and incorrect claim would tantamount to furnishing of inaccurat....
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....uch income, or Explanation 1.-Where in respect of any facts material to the computation of the total income of any person under this Act,- (A) such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Principal Commissioner or Commissioner to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, then, the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of clause (c) of this s....
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....) If explanation is offered but is found to be false, penalty will be exigible; (4) If explanation is offered and it is not found to be false, penalty may not be leviable,- (a) Such explanation is bona fide. (b) The assessee had made available to the Assessing Officer all the facts and materials necessary in computation of income. Therefore, Explanation 1 understood in the proper context, in particular, clause (c ) of sub-section (1) of section 271 makes the intention of the Legislature manifest. It clearly sets out when penalty is leviable and when penalty is not leviable. The condition precedent for levying the penalty is the satisfaction of the authority that there is a concealment of the particulars of the income or inaccurate....