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2016 (7) TMI 244 - ITAT INDOREPenalty u/s 271(1)(c) - inaccurate particulars of income by claiming expenses of inadmissible in nature and not showing income under proper head of income - Held that:- In assessment year 2002-03, we find that the assessee has claimed in the return of income that he has inherited this capital from his mother Smt. Sajjanbai. The assessee has added this amount in his capital account. The AO and the ld. CIT(A) has confirmed the same, but the I.T.A.T. has restricted this addition and this capital was inherited from his mother. We find that the assessee has disclosed the entire facts before the authorities and the assessee has made the claim in his return of income and it was his bona fide claim. The Tribunal has accepted the claim that the assessee has claimed ₹ 5,49,542/-, but the Tribunal has restricted the above addition to ₹ 2,99,542/-. Therefore, we are of the view that the assessee could not prove the claim that he has carried forward the amount and he has inherited this capital from his mother. The assessee could not prove that he has inherited ₹ 5,49,542/-, but the Tribunal has accepted the fact that the assessee has inherited the capital from his mother. Therefore, we are of the view that the assessee has made his claim in his return of income and explained the facts. The same were not accepted by the authority, but the assessee’s claim was bona fide. Therefore, the claim has been accepted partly. Therefore, we are of the view that no penalty can be levied on this account. Therefore, we delete the penalty. Interest expenses claim in return of income - Held that:- In assessment years 2003-04 and 2004-05 we find that the assessee during the course of assessment proceedings has conceded that it was his mistake that he has claimed certain expenses which are inadmissible in nature and he agreed to include such expenses in its total income. We find that the AO and CIT(A) is justified in imposing the penalty, because the assessee had agreed to this addition and surrender was made. When the assessee has surrendered this income, penalty has to be levied as per the decision of Hon'ble Supreme Court in the case of Mak Data Private Limited [2013 (11) TMI 14 - SUPREME COURT ]. Therefore, if the assessee agreed to surrender the income for mental peace, the penalty has to be imposed. Therefore, we confirm the order of the penalty on account of bogus expenses against interest income from M/s.Tirupati Starch & Chemicals Limited. Receipt of gift from Shri Nitish Patni and Shri Vinod Bangar - Held that:- As during the course of assessment proceedings, it is established that the assessee has received the gifts from two persons, but the gift was not genuine and it was proved beyond doubt that the gifts were bogus. Therefore, when the claim of the assessee is bogus, the assessee is liable for the penalty. Therefore, we confirm the penalty in respect of gifts.
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