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Whether on the facts and in the circumstances of thecaseand in law the Tribunal erred in upholding the levy of penalty u/s.271(1)(c) of the Act of Rs. 22,08,860/-on account of disallowance of Rs. 62,47,460/-which was allowable as a deduction under the provisions of Section 37 of the Act?

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Section 271(1)(c) of the Income Tax Act, 1961 — Penalty — Concealment penalty — Claim based on facts which were present at the time of making the assessment was found to be inadmissible does not the same thing as furnishing inaccurate particulars of income as contemplated under Section 271(1) (c), thus, assessee was not liable to be charged with concealment penalty. [2020] 54 ITCD 45 (BOM)
Facts: Being aggrieved of the order of Tribunal, assessee went on appeal before High Court and raised the question flaw that "Whether on the facts and in the circumstances of the case and in law the Tribunal grossly erred in upholding the levy of penalty under Section 271(1)(c) without appreciating / considering that: (i) the assessee had not been found to have concealed particulars or furnished inaccurate particulars of its claims;(ii) the aforesaid claim could be allowed under Section 37 as incurred wholly and exclusively for the purposes of business;(iii) no income has been concealed / avoided as inter alia the settlement with JCT took place in assessment year 2003-04, when the claim was made by the appellant under the provisions of Section 37.

Held that it is quite evident that assessee had declared the full facts; the full factual matrix or facts were before the Assessing Officer while passing the asessment order. It is another matter that the claim based on such facts was found to be inadmissible. This is not the same thing as furnishing inaccurate particulars of income as contemplated under Section 271(1) (c), thus, assessee was not liable to be charged with concealment penalty.