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2019 (5) TMI 1375 - AT - Income TaxPenalty levied u/s 271(1)(c) - Lack of the specification of charge for the levy of penalty - treatment of interest on fixed deposit - assessee has adjusted the interest earned with the interest expenditure and thereafter adjusted the resultant figure with the WIP - bonafide conduct of assessee HELD THAT:- The assessee’s accounting was not totally unacceptable the same cannot lead to levy of penalty u/s. 271(1)(c). In this regard, Hon'ble Apex Court decision in the case of Reliance Petroproducts [2010 (3) TMI 80 - SUPREME COURT] supports the case of the assessee. In this case it was held by Hon'ble Apex Court that if the Assessing Officer does not accept a claim of the assessee that will not ipso facto be a reason to initiate penalty proceedings. We note that assessee has agreed for the said treatment in the assessment proceedings. It is also the plea of the assessee that the said accounting treatment can be said to be an inadvertent error. In these circumstances also assessee deserves to succeed on the touchstone of Hon'ble Apex court decision in the case of Price Waterhouse Cooper [2012 (9) TMI 775 - SUPREME COURT] Another limb of the assessee’s plea is that Assessing Officer has mentioned that assessee has furnished inaccurate particulars of income in the assessment order. While in the penalty order Assessing Officer is not sure of the charge in as much as he has concluded that penalty has been levied for concealment of income or furnishing of inaccurate particular of income. In this view of the matter the assessee deserves to succeed on the touchstone of Hon'ble Jurisdictional High Court in the case of Samson Perinchery [2017 (1) TMI 1292 - BOMBAY HIGH COURT]. CIT has erred in distinguishing this decision from the Jurisdictional High Court, on the facts of this case. In the background of aforesaid discussion and precedent we set aside the orders of the authorities below and delete the penalty. - Decided in favour of assessee.
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