INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Validity - Claim under section 80P denied -

Issue arose under consideration as to whether Tribunal was correct in law in upholding the cancellation of penalty which was levied in terms of section 271(1)(c) by AO for concealment/furnishing of inaccurate particulars by assessee while making the claim under section 80P when the said claim was incorrect and disallowed by AO and upheld by Tribunal. Held: A.P. High Court in case of Pr. CIT v. M/s. Eluru Co-Operative House Mortgage Society Ltd. [I.T.T.A.No.29 of 2018, dt. 13-3-2013] stated that mere fact that assessee made a claim, even if found to be unjustified, it would not amount to it furnishing of any inaccurate particulars regarding its income, whereby a penalty can be levied under section 271(1)(c). Therefore appeal of Revenue was dismissed.

REFERRED : Pr. CIT v. M/s. Eluru Co-operative House Mortgage Society Ltd. [I.T.T.A.No.29 of 2018, dt. 13-3-2013] The Eluru Co-op. House Mortgage Society Ltd. v. ITO [ITA No. 564, 615/VIZ/2014 (Asst. Year : 2008-09), dt. 23-12-2016]

FAVOUR : In assessee's favour

A.Y. :

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