Section 271(1)(c) penalty couldn't be levied for furnishing 'inaccurate' particulars

AO couldn't levy penalty for furnishing 'inaccurate' particulars by invoking Explanation 1 to section 271(1)(c)

IN THE ITAT INDORE BENCH

Deputy Commissioner of Income-tax

v.

Nepa Ltd.

P.K. BANSAL, ACCOUNTANT MEMBER
AND MUKUL KR. SHRAWAT, JUDICIAL MEMBER

IT APPEAL NO. 683 (IND.) OF 2013
[ASSESSMENT YEAR 2003-04]

OCTOBER  13, 2014 

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income (Explanation 1 to section 271(1)(c)) - Assessment year 2003-04 - Assessee debited provision for doubtful debts in its audited profit and loss account which was disallowed in assessment - Assessing Officer levied penalty on assessee for furnishing inaccurate particulars of income by invoking Explanation 1 to section 271(1)(c) - Whether since Explanation 1 is applicable in respect of particulars which have been concealed and not for furnishing inaccurate particulars of income, penalty could not be sustained - Held, yes [Paras 8 & 9] [In favour of assessee]