2016 (11) TMI 1559

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....he assessee against the order of CIT(A) for the assessment year 2010-11 in the matter of imposition of penalty u/s.271(1)(c) of the IT Act. 2. Rival contentions have been heard and record perused. 3. During the course of scrutiny assessment AO made disallowance of Rs. 7,66,620/- on account of franking charges paid on term loan treated as the capital expenditure. Disallowance of Rs. 1,39,392/- on....

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....(1)( c).From the record we found that full details regarding franking charges, foreign exchange loss were filed before the lower authorities. There was no concealment of any particulars of income. Merely disallowance of claim does not amount to furnishing of inadequate particulars of income nor concealment of income. 7. The Hon'ble Supreme Court in the case of Reliance Petroproducts ltd. (322 ITR....

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....ture on interest would amount to giving inaccurate particulars of such income. Such cannot 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 furn....

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....1)(c). A mere making of the claim, which is not sustainable in law by itself will not amount to furnishing of inaccurate particulars regarding the income of the assessee. Such claim made in the return cannot amount to the inaccurate particulars. The revenue contended that since the assessee had claimed excessive deductions knowing that they were incorrect, it amounted to concealment of income. It ....