INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Making of claim not sustainable in law - No mala fide on assessee's part

Assessee claimed deduction under section 54. AO denied deduction on the ground that new house had not been constructed, rather assessee had expended amount for renovation/interior designing of property which could not be termed as construction.Held: Merely making of claim not sustainable in law by itself could not lead to levy of penalty under section 271(1)(c). Assessee at no point of time, had concealed particulars of income or had furnished inaccurate particulars of income becasue he has given necessary details so as to claim deduction under section 54 in the form of detail of cost of construction of property and there was no iota of mala fide on the part of assessee in claiming deduction under section 54, therefore, levy of penalty under section 271(1)(c) was not justified.

Relied:CIT v. Reliance Petroproducts (P) Ltd. (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2014-15

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