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2017 (12) TMI 415 - AT - Income TaxPenalty u/s 271(1)(c) - non-declaration of the rental income from property at Gurgaon, offering an amount of ₹ 74,789/- as rental income from the property at Ghaziabad and non-disallowance made under section 14A - Held that:- The assessee submitted that TDS certificate for Gurgaon property was issued consolidatedly for two years by the tenant and that also contributed to the offering of rental income on receipt basis. In support the assessee has filed copies of payment advices, consolidated TDS certificate showing amount after 31.03.2008, ledger of rent received for assessment years 2008-09 and 2009-10. We thus find that the assessee has been able to offer bona fide reasons for not disclosing the rental income from its property at Gurgaon and thus in absence of positive evidence beyond doubt regarding furnishing of inaccurate particulars of income or concealment of particulars of income towards the said rent, the Assessing Officer was not justified in invoking the penal provisions of section 271(1)(c). So far as rental income in respect of Kaushambhi (Ghaziabad) property is concerned, the explanation of the assessee remained that rental income for the month of March, 2008 was credited to the profit and loss account for the year ended on 31.03.2009 and was offered to tax in assessment year 2009-10. We thus find that the assessee was able to explain the non-disclosure of rental income in respect of the above property during the year and it cannot be said that it was a case of furnishing of inaccurate particulars of income in this regard especially when the assessee had paid tax on it when the Assessing Officer was not satisfied with the explanation of the assessee. Regarding the disallowance made under section 14A we are of the view that it remained a debatable issue and it cannot be said beyond doubt that non-disallowance of expenditure under section 14A by the assessee was furnishing of inaccurate particulars of income or concealment of particulars of income to attract the penal provisions of section 271(1)(c) of the Act. The Assessing Officer is thus directed to delete the penalty in this regard as well. - Decided in favour of assessee.
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