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2020 (2) TMI 1306 - AT - Income TaxLevying penalty u/s 271(1)(c) - receipt of interest on income tax refund u/s 244A - Timing of receipt of interest income and taxability of such interest in the year under consideration - HELD THAT:- We are of the considered view that once, the fact with regard to taxability of interest income in AY 2013-14 was not disputed by the Ld. AO, then he is erred in levying penalty u/s 271(1)(c) of the Act, 1961 for not offering interest income to tax for the year under consideration, more particularly when, the assessee has explained the reasons for not accounting and considering interest income to tax for the year under consideration. When, the assessee has offered to tax interest income in subsequent financial year, there is no reason for the Ld. AO to levy penalty on the same income for the year under consideration for not offering to tax said income, because the timing difference in offering income to taxes cannot be considered as concealment of particulars of income or furnishing inaccurate particulars of income. AO, as well as the Ld.CIT(A) were erred in levying penalty u/s 271(1)(c) in respect of additions towards interest on income tax refund. Hence, we direct the Ld. AO to delete penalty levied u/s 271(1)(c) - Decided in favour of assessee.
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