AI Drafter 
TaxTMI 
TaxTMI 
2017 (3) TMI 390
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....d claimed deduction towards expenditure incurred on travelling etc. under Section 57 of the Act. Returns were, admittedly, filed in respect of the aforementioned A.Ys. The Revenue reopened the assessments qua A.Ys.2008-09 and 2010-11. In so far as A.Y.2009-10 was concerned, it was picked up for scrutiny and a regular assessment order was passed. 5.2. In sum, the result of these proceedings was that the assessee, offered for tax, the sum expended on travel by having it included in the taxable income. Accordingly, both tax and interest were paid by the Assessee on the addition made on account of money expended on travel. 5.3. The Revenue, while concluding the reassessment proceedings, qua A.Ys.2008-09 and 2010-11, issued notice under Section 271(1)(c) of the Act, for initiation of penalty proceedings. Likewise, while, concluding the proceedings for A.Y.2009-10, a notice under Section 271(1)(c) of the Act was also issued. 5.4. Consequent thereto, penalty orders were passed for each of the A.Ys. In so far as A.Y. 2008-09 and A.Y.2010-11 are concerned, penalty orders were passed on 29.04.2013, while, for A.Y.2009-10, penalty order was passed on 31.05.2012. 5.5. Being aggriev....
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....shing of inaccurate particulars. The Hon'ble Apex Court in the case of CIT vs Reliance Petroproducts Pvt. Ltd. 322 ITR 158, had an occasion to consider an identical issue. When the assessee by furnishing all details claims a deduction which was otherwise allowable could not produce the material during the course of assessment, does not mean that inaccurate particulars were furnished in the return of income. The claim of the assessee towards expenditure was not substantiated due to temporary absence of the Accountant. Therefore, this Tribunal is of the considered opinion that this is not a fit case for levy of penalty u/s 271(1)(c) of the Act. In fact, the assessee very fairly conceded before the Assessing Officer to offer the said expenditure as income and paid the taxes also. In those circumstances, this Tribunal is of the considered opinion that levy of penalty u/s 271(1)(c) of the Act is not justified. Accordingly, the orders of the lower authorities are set aside and penalty levied by the Assessing Officer u/s 271(1)(c) of the Act is deleted..... " (Emphasis is ours) 7. Mr.J.Narayanasamy, learned counsel for the Revenue, says that the judgment of the Tribunal is....
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.... being confronted with these circumstances, offered to pay tax on money received in the form of share application money by having it treated as income from other sources. 12.2. It is, in this context, the Supreme Court observed that it was not a case of "voluntary disclosure" and, therefore, penalty under Section 271(1)(c) of the Act was rightly levied. This aspect of the matter comes through, upon a close perusal of the following observation made in paragraph 9 of the judgment: ".....9. We are of the view that the surrender of income in this case is not voluntary in the sense that the offer of surrender was made in view of detection made by the AO in the search conducted in the sister concern of the assessee. In that situation, it cannot be said that the surrender of income was voluntary. AO during the course of assessment proceedings has noticed that certain documents comprising of share application forms, bank statements, memorandum of association of companies, affidavits, copies of Income Tax Returns and assessment orders and blank share transfer deeds duly signed, have been impounded in the course of survey proceedings under Section 133A conducted on 16.12.2003, in....
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....d embrace the meaning of the details of the claim made. It is an admitted position in the present case that no information given in the Return was found to be incorrect or inaccurate. It is not as if any statement made or any detail supplied was found to be factually incorrect. Hence, at least, prima facie, the assessee cannot be held guilty of furnishing inaccurate particulars. The Learned Counsel argued that "submitting an incorrect claim in law for the expenditure on interest would amount to giving inaccurate particulars of such income". We do not think that such can be the interpretation of the concerned words. The words are plain and simple. In order to expose the assessee to the penalty unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By any stretch of imagination, making an incorrect claim in law cannot tantamount to furnishing inaccurate particulars. In Commissioner of Income Tax, Delhi Vs. Atul Mohan Bindal [2009(9) SCC 589], where this Court was considering the same provision, the Court observed that the Assessing Officer has to be satisfied that a person has concealed the particulars of his income or furnished inaccurate part....