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2022 (3) TMI 1119 - AT - Income TaxPenalty levied u/s 271(1)(c) - deduction u/s 80P(2)(a)(i) - AO disregarded the contention of the assessee by observing that the explanation 1 to section 271(1) the Act is a deeming provisions which cast duty on the assessee to offer an explanation to the effect that it has not furnished inaccurate particulars of income - whether the assessee has furnished inaccurate particulars of income with respect to the interest income from the nationalized bank by claiming the deduction under section 80P(2)(a)(i)? - HELD THAT:- Assessee under the bona fides believe has claimed the deduction under section 80P(2)(a)(i) of the Act with respect to the interest income as discussed above. It is also pertinent to note that the assessee has claimed before the learned CIT (A) that it was allowed deduction under section 80P(2)(a)(i) of the Act with respect to the interest income from the nationalized bank with respect to the assessment years up-to 2011-12. Claim of the assessee at the most can be regarded as inaccurate claim which cannot be equated with the furnishing inaccurate particulars of income. It is for the reason that nothing has been brought on record by the authorities below suggesting that the assessee has furnished the particulars of income with dishonest intent. As regards the explanation 1 to section 271(1)(c) of the Act, there was no iota of evidence suggesting that the explanation offered by the assessee was false. Thus the claim of the assessee cannot be said amounting to concealment of particulars of income. Likewise, there was no finding of the authorities below qua the fact that the assessee fails to substantiate the explanation offered by him and fails to prove that such explanation is bona fides with respect to material facts relating to the computation of total income. Thus in our considered view the provisions of explanation 1 to section 271(1)(c) of the Act cannot be attracted in the given facts and circumstances. In view of the above and after considering the facts in totality, we set aside the finding of the learned CIT (A) and direct the AO to delete the penalty levied by him under section 271(1)(c) of the Act. Hence the ground of appeal of the assessee is allowed.
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