TMI Blog2023 (9) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... come tax. Thus, no merits in the findings of the AO that the assessee chose to disclose the interest only after the case was selected for limited scrutiny - unless the refund is received, the interest element of the refund cannot be determined. It is also pertinent to note that the suo moto declaration of interest on income tax refund, as offered by the assessee during the assessment proceedings, has been accepted vide order passed u/s 143(3) of the Act without modification of the revised computation in this regard. Therefore, we are of the view that the explanation of the assessee for not offering the interest on income tax refund while filing its return of income is bona fide, and thus, the non-declaration of interest on income t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which were asked during the course of search, which resulted in the unintended delay in filing the present appeal. The assessee, in the affidavit, further submitted that she was under tremendous mental pressure and agony which led to an unintentional oversight of the impugned order received on the email. Accordingly, the assessee has prayed for condonation of delay in filing the present appeal. 3. On the other hand, the learned Departmental Representative ( learned DR ) vehemently opposed the prayer for condonation of delay in filing the appeal. 4. Having considered the submissions of both sides and perused the material available on record, we find that the reasons stated by the assessee for seeking condonation of delay fall within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the adjournment nor has communicate the reason to do the same. The appellant prays that the order passed u/s 250 shall be treated as bad in law and strucked down. GROUND II: WITHOUT PREJUDICE TO THE GROUND I ABOVE, THE LEARNED CIT(A) ERRED IN STATING THAT APPELLANT DID NOT ASK FOR ANY PERSONAL/VIRTUAL HEARING DURING THE PENALTY PROCEEDINGS BEFORE AO. 1. The learned CIT(A) erred in not reflecting to the appellant submission dated 5th January, 2022 to the AO wherein a request for virtual hearing was expressly made. 2. The learned CIT(A) failed to appreciate the fact that mere opportunity of submitting replies online and not giving any virtual hearing cannot be said that the opportunity of being heard was given to appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case and in law, the learned CIT(A) and AO failed to appreciate the fact that no assessee will attempt to evade or underreport those incomes which are readily available with assessing officer and displayed on the Form 26AS, Annual Information Return. 5. On the facts and circumstances of the case and in law, the learned CIT(A) and AO failed to appreciate the fact that Income Tax refund being contingent asset in nature, as per accounting standards also, it is accounted as and when it is actually received, and interest being directly linked to it also becomes an contingent asset, therefore unless and until it is not received actually, or no information about its adjustment against any past demands is given to the assessee, assessee couldn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,41,907. As the assessee had received interest on income tax refund amounting to Rs. 9,72,915, which was not considered at the time of filing the return of income, notice under section 274 read with section 270A of the Act was issued to the assessee asking the assessee to show cause as to why penalty under section 270A of the Act be not levied. In response thereto, the assessee submitted that during the scrutiny assessment proceedings, she had voluntarily offered the interest of income tax refund without any show cause notice being issued on the same and therefore it cannot be considered as an attempt to under-report the income. The assessee further submitted that while filing the return of income she neither had any intimation regarding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the assessee. From the paper book filed by the assessee, we find that during the assessment proceedings, the AO sought various information such as details of all the investments, and sources of such investments along with the supporting documents, which were duly responded to by the assessee. We find that during the scrutiny assessment proceedings, the assessee on the basis of Form 26AS, as available on the date, suo moto furnished a revised computation and offered the interest on income tax refund to tax. As per the assessee, while filing her return of income, she neither received any income tax refund by cheque or by ECS in a bank account nor there was any intimation regarding the determination of the refund amount. Further, even as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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