2026 (4) TMI 1124

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...., Delhi, ["learned CIT(A)"], which in turn arose from the penalty order passed under section 271(1)(c) of the Act, for the assessment years 2014-15 and 2015-16. 2. Since both the appeals pertain to the same assessee involving a similar issue arising out of a similar factual matrix, these appeals were heard together as a matter of convenience. With the consent of the parties, the assessee's appeal for the assessment year 2014-15 is considered as a lead case, and the decision rendered therein shall apply mutatis mutandis to the other appeal. 3. The solitary grievance of the assessee in both appeals pertains to the levy of penalty under section 271(1)(c) of the Act. 4. As the assessee has raised similar grounds in both appeals, the gr....

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....idering the facts and circumstances of the case. 5. The appellant craves leave to add, amend, alter OR DLEETE the said ground of appeal." 5. We have considered the submissions of both sides and perused the material available on record. The brief facts of the case are that the assessee is the principal financial institution for promotion, financing and development of the MSME, and to coordinate the functions of the institution, it is engaged in similar activities. For the assessment year 2014-15, the assessee filed its return of income on 29/11/2014, declaring a total income of INR 1,769,73,82,910 under the normal provisions of the Act and book profit at INR 2,147,27,32,852 under section 115-JB of the Act. The return filed by the....

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....t since the issue is debatable, no penalty under section 271(1)(c) of the Act can be levied. 8. Having considered the submissions of both sides and perused the material available on record, we find that vide order dated 18/03/2013 passed in assessee's own case in Small Industries Development Bank of India v/s DCIT, in ITA No. 792 of 2012, the Hon'ble Jurisdictional High Court admitted the following substantial question of law: - "Heard. Admit on the following substantial question of law. a) Whether on the facts and in the circumstances of the case and in law the amount paid by the appellant to MMRDA as "lease premium" constituted revenue expenditure and the appellant was entitled to claim a proportionate part of the sai....

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....uid Investment Ltd. [IT Appeal No. 240 of 2009, dated 5-10-2010], CIT v. H B Leasing & Finance Co. Ltd. [2012] 20 taxmann.com 190/211 Taxman 132 (Mag.)/[2011] 334 ITR 367 and CIT v. Thomson Press India Ltd. [IT Appeal 426,440 of 2013] has upheld the deletion of the penalty on the same ground i.e. the fact that appeals were admitted proved that the issue was debatable. The relevant portion of the orders in Liquid Investment Ltd (supra) and Thomson Press India Ltd. (supra) is reproduced hereinbelow:- (A) Order dated 5th October, 2010 passed by this Court in Liquid Investment Ltd (supra) :- "Both the CIT(A) as well as the ITAT have set aside the penalty imposed by the Assessing Officer under section 271(1)(c) of the Income-ta....

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....meaning of the term "particulars" in section 271(1)(c) of the Act, the Hon'ble Supreme Court in CIT v/s Reliance Petroproducts (P) Ltd., reported in [2010] 322 ITR 158 (SC), held that mere making of the claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. The relevant findings of the Hon'ble Supreme Court, in the case cited supra, are reproduced as follows: - "9. We are not concerned in the present case with the mens rea. However, we have to only see as to whether in this case, as a matter of fact, the assessee has given inaccurate particulars. In Webster's Dictionary, the word "inaccurate" has been defined as :- "not accurate, not....