Shanti Prime Publication Pvt. Ltd.
Sec. 271(1)(c) of Income Tax Act, 1961 – Penalty – Assessee has not furnished any inaccurate particular of income deliberately, thus, he cannot be visited with the penalty under section 271(1)(c).
Facts:The effective issue raised by assessee is that erred in confirming the penalty levied under section 271(1)(c) on account of furnishing inaccurate particulars of income.
Held, that genuineness of expenses claimed was not found as incorrect by the authority. Therefore, the assessee should not be visited with penalty merely on the basis of claim made by the assessee is not maintainable in the view of Revenue unless and until the genuineness of expenses claimed found to be incorrect or erroneous. Moreover, it is not like this that the assessee shall never be allowed deduction for the exhibition expenses. As such the provisions of law permits to claim the deduction in the year in which the assessee deduct the TDS and deposits the same to the income tax Department. Thus, the assessee has not furnished any inaccurate particular of income deliberately. Accordingly he cannot be visited with the penalty under section 271(1)(c) – ARROW DIGITAL P. LTD. Vs. DEPUTY CIT [2020] 80 ITR (TRIB) 360 (ITAT-AHMEDABAD)