Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 728 - AT - Income TaxPenalty u/s 271(1)(c) - error in calculating the interest on F.D. - Held that:- We have seen that during the assessment proceedings the assessee has accepted the error in calculating the interest on F.D. and the difference of ₹ 94,530/- was added to the total income of the assessee. Further addition on account of interest income of ₹ 10,83,695/- was added by the AO only after verification from Bank of India, Stock Exchange Branch. We have further noted that the verification was carried out by the AO only at the instance of the assessee’s request letter dated 18.12.2005. The AO deputed the Tax Inspector only on the request of the assessee for verification of the credits in the bank account of the Assessee. In our considered view the assessee has sufficiently explained the addition made by the AO which is the sufficient explanation as per section 271(1)(c).Considering the fact that the assessee has sufficiently explained the facts, hence no penalty was leviable. The ground of appeal of the assessee is allowed.
|