TaxTMI 
TaxTMI 
2023 (8) TMI 639
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....ming the part of penalty. 2. That the A.O. has not brought anything on record to prove the real fault of the assessee as such penalty imposed is illegal and The Learned CIT(A) erred in confirming the part of penalty." 3. Brief facts of the case as per statement of facts submitted by the assessee are that the appellant is a defunct private limited company, Appraisal period is 2006-07 financial year relevant to 2007-08 assessment. Company was running in losses and stopped business in the middle of the year. Company was Mfg. & dealing in shoddy woolen waste & yarn. Due to heavy rains factory shed was blown up and cotton & waste were fully damaged destroyed and mixed up with mud and were not of any use. Sales tax department accepted the acco....
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....to stock and loss of the assessee and the assessee could not claim the loss before the insurance authorities since the insurance policies had expired at the time of incident wherein, the loss occurred. The ld counsel submitted that the issue of imposing penalty is separate from addition made during the assessment and no concrete evidence has been brought on record by the AO to establish that the assessee as either furnished inaccurate particulars of income or had concealed particulars of income therefore, in view of various judgment of Hon'ble Supreme Court, Hon'ble High Court and coordinate bench of Tribunal including the judgment of Hon'ble Supreme Court in the case of CIT Vs. Reliance Petroproducts Pvt. Ltd [2010] 322 ITR 158....
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.... got rotten up could be brought on record. The ld CIT(A) in the quantum appeal further noted the findings of the AO on the basis of which loss claimed by the appellant was disallowed. From the order of the quantum proceedings it is clear that the AO disallowed the claim of assessee on two grounds that no claim for insurance was made that the stock was covered under the insurance and no evidence in support its claim that stock got rotten up should brought on record. But there is no findings of the authorities below that the claim of assessee was incorrect or false to allege that the assessee has either furnished incorrect particulars of income or has concealed particulars of income to alleged penalty provisions of section 271(1)(c) of the Ac....