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2017 (8) TMI 1694 - AT - Income TaxLevy penalty u/s. 271 (1)(c) - admitting the rental income under the head income from 'house property' has claimed deduction of 30% of the rentals u/s.24(a) - claim of depreciation on let-out buildings - HELD THAT:- There is a double deduction claim, which is not permitted in the Act. The fact of claiming depreciation on the let-out buildings has come to the notice of the Assessing Officer only during the course of assessment proceedings. Thus, there is a clear concealment of taxable income, by furnishing inaccurate particulars, on account of claiming depreciation on the let-out buildings. Therefore, the assessee’s explanation is found to be false within the scope of Explanation1 r.w.s. 271(1)( c). On such facts and circumstances, the Assessing Officer and the CIT(A) have rightly concluded that the claim of depreciation on let-out buildings is a concealment of income by furnishing inaccurate particulars and hence the levy penalty u/s. 271 (1)(c) on this issue is confirmed. AO disallowed assessee's claims of 'provisions for warranties" debited in P&L account holding that they are unascertained liabilities - The assessee has admitted the income for the period for which the ITAT has decided the appeals ie for ays 1997 & 1998 in its revised return. It’s explanation that its appeals for ays, 1999-00 and 2000-01 was pending before the ITAT as on the date of filing the revised return for ay 2003-04 and hence it did not admit the income related to those ays is a fact, as per the chronological events extracted, supra. Neither the AO nor the CIT (A) found that this explanation of the assessee to be false. Hence, on this issue, there is no ground to levying penalty u/s 271(1) (c) read with Explnation1. In view of that the penalty levied on this issue is directed to be deleted. All the grounds of appeal on this issue is allowed. Assessee’s appeal is allowed partly.
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