TaxTMI 
TaxTMI 
2016 (7) TMI 757
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.... Authorised Representative (AR) on behalf of the Assessee and by Capt. Pradeep S. Arya, Departmental Representative (DR) on behalf of the Revenue. 3. In this case both the parties made their respective submissions before us and the same has been considered while disposing this appeal. 3.1. Ld. Counsel of the assessee relied upon following judgments in support of his arguments that no penalty should be levied on this case. 1. Decision of Hon'ble Supreme Court in case of CIT v. Reliance Petroproducts Pvt. Ltd [322 ITR 158]. 2.Decision of Hon'ble Supreme Court in case of Price Waterhouse Coopers Pvt. Ltd v. CIT & Ors [348 ITR 3061 3. Order of Hon'ble Mumbai Tribunal in case of B. Melaram & Sons v. ACIT [ITA No.5143/Mum/2014] d....
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....appellant concealed the particulars of income as well as furnished inaccurate particulars of such income by claiming a deduction of Rs. 18,25,000/- in the garb of bad debt' even though the Rs. 18,25,000/- was paid towards application money for acquisition of shares and the money lost was not related to any business activity. Under the circumstances, the levy of penalty at the minimum rate of 100% amounting to Rs. 6,14,2951- is found to be perfectly valid. 2. The appeal is dismissed. Sd/- Commissioner of Income Tax (Appeals)-6, Mumbai." 3.3. Before us, it was vehemently submitted by the Ld. Counsel that he was ....
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....hare application money had become irrecoverable. The disallowance made by the AO was not contested vigorously by the assessee as the same was revenue neutral as the assessee had incurred huge losses, which were not even available for carry forward and set off in future years. Thus, apparently, there was no motive with the assessee to make a bogus or inflated claim while filing its return of income. Under these circumstances, it was imperative on the part of the lower authorities to examine the aspect of levy of penalty within the provisions of the Act, independently and with liberal attitude. 3.6. The levy of penalty and its confirmation has far reaching serious implications upon an assessee, since it may also invite prosecution of the ass....
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.... for its fair, transparent and hassle-free functioning can be increased and as a result of it, voluntary tax compliance can also be strengthened. 3.8. It is further noted by us that time and again and Hon'ble Apex Court has given guidance through its various landmark judgments with regard to levy of penalty u/s 271(1)(c) upon a disallowance made by the AO in the assessment order. Immediate reference can be made in this case to judgment of Hon'ble Supreme Court in the case of CIT v. Reliance Petro Product Pvt. Ltd, 322 ITR 158 (SC) and Price Waterhouse Coopers Pvt. Ltd. v. CIT 348 ITR 306 (SC). In the case of Reliance Petro Product Pvt. Ltd. (supra), Hon'ble Supreme Court came down heavily upon the approach of the assessing officer whereby ....