TaxTMI 
TaxTMI 
2018 (1) TMI 137
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....alled "the Act") for assessment year 2009-10. 2. The brief facts of the case are that the assessee had filed its return of income declaring total income of Rs. 1,22,80,582/- and an addition of Rs. 66,000/- was made in the assessment order passed section 143 (3) of the Act by disallowing the expenses relating to issue of shares for increase in the authorised share capital. During the course of assessment proceedings, it was found that the assessee had claimed expenses of Rs. 3,60,960/- under the head "miscellaneous expenses" and on verification it was found that the assessee had debited total expenses of Rs. 3,30,000/- on account of issue of shares out of which Rs. 2,64,000/- had been added back in the computation of the total income and ....
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....hout any bona fide. It was submitted that the penalty imposed be confirmed. 5. We have heard the departmental representative and have also perused the material on record. The facts of the case are undisputed. The penalty has been imposed for furnishing inaccurate particulars of income. Undoubtedly, there has been a failure on the part of the assessee in adding back the amount of Rs. 66,000/- to the computation of his income. However, it is not the case of the Department that the assessee had furnished inaccurate particulars because the relevant details were very much on record and formed part of the return of income of the assessee. At this juncture it may be apposite to refer to the decision of the Hon'ble Supreme Court in the case of C....
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....njunction, they must mean the details supplied in the return, which are not accurate, not exact or correct, not according to truth or erroneous. The court noted that it was an admitted position that no information given in the return was found to be incorrect or inaccurate. It was not as if any statement made or any detail supplied was found to be factually incorrect and accordingly, held that, prima facie, the assessee could not be held guilty of furnishing inaccurate particulars. The court repelled the contention raised by the counsel for the revenue that "submitting an incorrect claim in law for the expenditure on interest would amount to giving inaccurate particulars of such income". The Hon'ble Apex Court held that in order to expose t....
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.... suggested that by making incorrect claim for the expenditure on interest, the assessee has furnished inaccurate particulars of income. As per Law Lexicon, the meaning of the word "particular" is a detail or details (in plural sense); the details of a claim, or the separate items of an account. Therefore, the word "particulars" used in the section 271 (1) (c) would 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. Th....