COMMISSIONER OF INCOME TAX, DELHI Vs. MADHUSHREE GUPTA

JUDGEMENT

(1.) This appeal is directed against the Tribunal's order dated 25.05.2012 in ITA No. 1589/Del/2005 pertaining to the assessment year 2001-02. It arises out of the penalty order passed by the Assessing Officer under Section 271(1)(c) of the Income Tax Act, 1961. A penalty of Rs. 18,79,303/- had been imposed upon the respondent. The Commissioner of Income Tax (Appeals) confirmed the penalty, which had been deleted by the Tribunal by virtue of the impugned order.

(2.) The Assessing Officer had noted that the assessee had claimed current year's losses amounting to Rs. 80,65,000/- pertaining to the business of the assessee in respect of the share trading business. The respondent / assessee had set off this loss against the amount of profit after claiming deduction under Section 80HHC of the said Act. The Assessing Officer held that the deduction under Section 80HHC was allowable on the gross total income as defined under Section 80AB read with Section 80HHC. The gross total income, according to Section 80AB, was the income of the assessee after setting off the current year's losses. Consequently, the Assessing Officer had, in the quantum proceedings, disallowed the deduction of Rs. 53,17,841/- out of the total deduction of Rs. 1,03,61,340/- claimed by the assessee /respondent.

(3.) The learned counsel for the respondent pointed out that the Tribunal had placed reliance on the decision in the case of CIT v. Reliance Petroproducts Private Limited, 2010 322 ITR 158 wherein it was held that mere making of a claim, which is not sustainable in law, would not, ipso facto, amount to furnishing inaccurate particulars regarding the income of the assessee and would, therefore, not automatically result in a penalty order against the assessee.