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2016 (7) TMI 1233 - AT - Income TaxPenalty u/s.271(1)(c) - non disclosure of accrued interest - Held that:- As far explanation offered by the assessee about the interest is concerned we hold that his explanation was bona fide.If the factors like receipt of TDS certificate in the month of March,2011 and subsequent development are considered it becomes clear that there was plausible reason for filing a revised return of income. Therefore, in our opinion penalty should not have been levied with regard to the accrued interest not shown in the original return. - Decided in favour of assessee Claim of maintenance-charges against the rental income - Held that:- In the explanation filed by the assessee, he has stated that it was an inadvertent mistake. We are of the opinion that it is not an issue where two views are possible or there can be difference of opinion. It is a clear case of making an inadmissible claim, as state earlier. Has the case not been scrutinised, the assessee would have walked away with it. It is also a fact that so-called revised return was filed after the AO had issued a notice u/s.143(2)notice. We should not forget that only a miniscule percentage of the returns are selected for scrutiny by the department. Therefore, it is the duty of the taxpayers to pay due taxes.It is their right that they are not taxed for the income that has not been received or accrued to them. But,the other side of the coin is that they should not put forth totally inadmissible claim and reduce the tax liability. For such a omission, if penal provisions are invoked by the AO they should not have any grudge. Therefore, we hold that the AO had rightly levied penalty for claiming maintenance charges against the rental income. - Decided against assessee
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