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2021 (12) TMI 1043 - AT - Income TaxPenalty u/s. 271(1)(c) - assessee had wrongly shown the rental income as 'business income' whereas it was to be offered for taxation as 'income from house property' - HELD THAT:- Admittedly the assessee has not concealed the aforesaid rental income received from two parties. The income was duly offered for taxation, however, as income from business and profession. The assessee in this respect has relied upon its objects wherein it has been mentioned that one of the object of the assessee was to provide space solutions to its clients. The assessee taking shelter under the aforesaid object, returned the income from the space rented out by it to two parties as business income. However, the income tax authorities and even appellate authorities did not agree with the aforesaid plea of the assessee and held that the assessee was primarily in the activity of providing IT Solutions and related activities and that renting of property was not the business activity of the assessee. One fact which is apparent on the file is that the assessee had not concealed his income and under the bona fide belief, offered the same for taxation. However, the income tax authorities assessed it under different head. Even the pertinent fact on the file is that in the immediate preceding assessment year, the assessee had offered the same income as income from business and which was accepted by the AO under scrutiny assessment proceedings. Under the circumstances for the assessment year under consideration, the assessee can safely be said to be having bonafide belief for offering the same under the same head i.e. 'income from business or profession'. - We do not find that it is a fit case for levy of penalty u/s. 271(1)(c) - Decided in favour of assessee.
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