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2020 (10) TMI 1253 - AT - Income TaxPenalty u/s 271(1)(c) - omission on the part of the assessee for not taking into account of the interest accumulated on the FDs maintained with various banks - HELD THAT:- When individuals / HUF maintain Fixed Deposits in piecemeal with various banks, the interest earned on the fixed deposits might be lost sight off as the interest gets automatically accumulated with the deposits. The need to evaluate those Fixed Deposits will arise only when funds are required for a specific purpose. In the case of the assessee-HUF it appears that the assessee took stock of the Fixed Deposits when they were in the process of purchasing the house property and the interest earned by those Fixed Deposit was inadvertently omitted to be taken into account. It is only an unintended omission on the part of the assessee. It is pertinent to mention that the decisions relied on by the ld. DR are not applicable to the facts and circumstances of these cases before us. Therefore, in the interest of justice, we hereby set aside the orders of the Ld. CIT (A) and further direct the Ld. AO to delete the penalty imposed as per section 271(1)(c) - Decided in favour of assessee.
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