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2015 (10) TMI 1481 - AT - Income TaxPenalty under section 271(1)(c) - claim for deduction of various expenses, etc., in the computation of income under the head "Income from house property" - Held that:- Here is a case in which the assessee earned rental income to the tune of ₹ 84 lakhs on which it claimed deduction under section 24(i) for a sum of ₹ 18.75 lakhs. Despite that, it further claimed deduction for various expenses and allowance in respect of let out property from which rental income was earned. Such claim for deduction of various expenses, etc., in the computation of income under the head "Income from house property" is patently and ex facie untenable. It is not an issue on which two opinions can possibly be formed and the assessee chose to follow the view favourable to it. The provisions of Chapter IV-C are simple and plain in not admitting any deduction for expenses, etc., of the nature which have been claimed by the assessee, within its ambit. As the assessee knowingly made a wrong claim which is patently inadmissible, we cannot, but, uphold penalty under section 271(1)(c) of the Act. Our view is fortified by a recent judgment from the hon'ble jurisdictional High Court in CIT v. NG Technologies Ltd. [2014 (12) TMI 481 - DELHI HIGH COURT), in which the assessee claimed deduction for loss on sale of fixed assets in its profit and loss account. The hon'ble Delhi High Court upheld the penalty in respect of such patently inadmissible claim. The facts of the instant case are on all fours with that of NG Technologies Ltd. inasmuch as here also the assessee claimed deduction for expenses and depreciation, etc., against income from house property, which is clearly not allowable. We, therefore, approve the view taken by the learned Commissioner of Income-tax (Appeals) in affirming the instant penalty. - Decided against assessee.
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