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2020 (9) TMI 608 - AT - Income TaxPenalty u/s 271(1)(c) - addition made on account of undisclosed interest income - HELD THAT:- The interest income related to other client ID of ₹ 2,85,26,008/- earned during the year under consideration was never informed by the bank to the assessee and even Form No.16A for the same was apparently not issued. The assessee came to know about the earning of the said interest income only when the same was realized by it in the immediately succeeding year when the concerned Fixed Deposits in bank got matured. Accordingly, the same was declared by the assessee in that year as its income. As remained undisputed by the AO during the course of assessment proceedings as well as penalty proceedings and by the ld. DR at the time of hearing before us, we are of the view that the mistake of the assessee in understating its interest income from bank to the extent was bona-fide one and it gets further fortified by the fact that credit for the tax deducted at source from the said income by the bank was not claimed by the assessee in the return of income filed for the year under consideration. We, therefore, find ourselves in agreement with the CIT(A) that this is not a fit case where assessee can be said to have concealed particulars of its income or furnished inaccurate particulars of such income as contemplated u/s 271(1)(c) and the penalty imposed by the AO under the said provisions of the Act, in our opinion, was rightly cancelled by the ld. CIT(A). We, therefore, uphold the impugned order of the ld. CIT(A) cancelling the penalty u/s 271(1)(c) - Decided against revenue.
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