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2018 (10) TMI 486 - AT - Income TaxPenalty u/s 271(l)(c) - TDS not been deducted on the interest payments - bonafide mistake - whether interest payment from HP State Agricultural and Rural Development Bank was exempted from the TDS provisions ? - Held that:- We find that HP State Cooperative Agriculture & Rural Development Bank Ltd. is not exempted from deducting the TDS. The assessee has shown the agricultural income even though it is non taxable in the return of income. Similarly the assessee has also shown the interest received on FDR’s from SBI, Nahan, ICICI Bank, Nahan and also Himachal Gramin Bank, Nahan. Hence the plea that the interest on FDR’s have been omitted on a bonafide belief that the interest on FDR’s is not taxable cannot be accepted. The assessee has not disclosed the interest income on these FDRs in his return of income. The contention of the assessee has been that it was a bonafide mistake has been well addressed by the Assessing Officer in para 5 of the penalty order. At the end of para 6 it is clearly mention that the assessee had invested ₹ 40,00,000/- in FDRs and the same was detected by the AO while collecting information u/s 133(6). The Parliament: amended the law by omitting the expression “deliberately” in sub-section (c) which was omitted by Finance Act, 1964. After such omission an explanation was also inserted. After this burden has been shifted to the assessee to prove that he has not concealed the particulars of income and if such explanation is found to be bonafide then penalty cannot be levied but if no explanation is given or the explanation is found to be false then penal consequences will follow. The penalty under the provision is a civil liability. Willful concealment is not an essential ingredient for attracting civil liability as is the case in the matter of prosecution u/s 276C of the Income Tax Act. See Union of India & Others Vs. Dharmendra Textile Processors [2008 (9) TMI 52 - SUPREME COURT] Hence keeping in view the facts and circumstances of the instant case and the judicial pronouncements, wherein the bonafide has not been proved by the assessee and the revenue could bring about a clear case of concealment of income, we hereby decline to interfere with the order of the Ld. CIT(A). - decided against assessee
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