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2019 (3) TMI 317
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....fficer in levying a penalty of Rs. 44,531/- u/s. 271(1)(c) of the Income Tax Act, 1961, being 100% of the tax sought to be evaded, without considering the facts and circumstances of the case. 2) On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of the Learned Assessing Officer in levying a penalty without creating charge whether it is for concealment of income or furnishing inaccurate particulars of income. 3) On the facts and circumstances of the case as well as in law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in levying a penalty of u/s.271(1)(c) of the Income Tax Act' 1961, on the issue of addition made of Rs.....
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....re Ld. CIT(A) and Ld. CIT(A) after considering the case of both the parties, dismissed the appeal of the assessee and upheld the order of levy of penalty. 4. Now before us, the assessee has preferred the present appeal by raising the above grounds. Ground No. 1, 3 & 4 5. These grounds raised by the assessee are inter connected and inter related and relates to challenging the order of Ld. CIT(A) in confirming the action of the AO in levying a penalty of u/s. 271(1)(c) of the Income Tax Act, 1961, therefore we thought it fit to dispose of the same by this common order. 6. We have heard counsels for both the parties at length and we have also perused the material placed on record, judgment cited by the parties as well as the orders....
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....ted by the AO as 'Short Term Capital Loss', whereas it is a settled legal position that mere making of claim which is not sustainable in law, by itself will not amount to furnishing inaccurate particulars of income regarding the income of the assessee. This proposition has already been settled by the Hon'ble Apex Court in the case of CIT vs. Reliance Petro products (P.) Ltd. (322 ITR 158), wherein it was held that the disallowance made by the AO in the assessment order under section 143(3) of the Act were solely on account of different views taken on the same set of facts and, therefore, they could, at the most, be termed, as difference of opinion but nothing to do with the furnishing of inaccurate particulars of such income by the assessee....
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.... a penalty. 14. Further, the Hon'ble Bombay High Court in the case of DIT vs. Administrator of the Estate of Late Mr. E.F. Dinshaw (218 Taxman 125) had held that penalty for concealment of income, cannot be levied for claim being rejected by revenue, where full details were disclosed in return. That was the case in which the Appellant claimed that section 94(7) of the Act did not apply to its case since that provision refers to 'sale" whereas the Assessee's case was that of redemption. The Hon'ble Bombay High Court, followed the ratio laid down in the decision of Reliance Petroproducts (supra) and held that since the Assessee had given all the details and its claim was based on bona fide belief, penalty under section 271(....
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....ecord to show that on furnishing its return of income, the assessee had either concealed its income or had furnished any inaccurate particulars of income. The mere treatment of business loss as speculation loss by the Assessing Officer did not automatically warrant the inference of concealment of income. Following this decision the Coordinate Bench in the case of ACIT v. M/s. Claridges Investments and finance P. Ltd (supra) held as under:- " 3. The assessee preferred an appeal before the FAA and contended that the disallowance made by the AO had converted the business loss into speculative loss following the provision of explanation to section 73 of the Act, that the addition were made on account of application of deeming provision....