Police made the submission in its status report filed in the court of Metropolitan Magistrate Viplav Dabas, who is hearing a plea seeking registration of FIR against Shinde for allegedly promoting enmity between different groups on grounds of religion by his remark.
The court has now reserved its order on the complaint made by RTI activist Vivek Garg for February 27.
In its status report, police said the CD containing Shinde's speech provided by the complainant "shows that there was no intention to link terrorism to any particular religion.
It also said Shinde had not uttered any words with deliberate intention to wound religious feelings of any person or community.
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"The latest development in Parliament is that the home minister issued a statement regretting his Hindu terror remark and stated that he had no intent to link terrorism to any religion. The Opposition party has welcomed his statement," the police said, adding that the complaint be dismissed.
"Whether the minister had any intention to hurt anyone's feelings or not does not matter as he made a comment which was widely reported and his statement has even given a boost to LeT founder Hafiz Saeed."
The complainant had sought registration of FIR against Shinde for "making imputations prejudicial to national integration, uttering words with deliberate intent to wound religious feelings of Hindus, defaming them, and insulting their religion and beliefs".