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2014 (7) TMI 902 - AT - Income TaxPenalty u/s 271(1)(c) - Failure to prove that income from property arisen due to systemic activity – Held that:- The assessee is in the business of taking the property on lease and further leasing out the same then treating the rental income as business income is a bonafide claim of the assessee though the same was not accepted by the AO - The issue of treatment of rental income as income from house property is highly debatable issue and rejection of such claim by the AO by taking a different view does not ipso facto lead to the conclusion that the assessee has furnished inaccurate particulars of income or concealed the particulars of income - rejection of claim would not tantamount to concealment of particulars of income or furnishing of inaccurate particulars of income warranting levy of penalty – Relying upon COMMISSIONER OF INCOME TAX-I, MUMBAI Versus M/s BENNETT COLEMAN & CO LTD [2013 (3) TMI 373 - BOMBAY HIGH COURT] - assessee has furnished and disclosed all relevant particulars regarding the income from letting out of the property - assessment of income under a different head by the AO resulting in disallowance of expenditure would not justify levy of penalty u/s 271(1)(c) particularly when the assessee is in the business of taking the property on lease and then letting out the same on sub-lease – Decided against Revenue.
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