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2019 (1) TMI 91 - AT - Income TaxPenalty u/s 271(1)(c) - Excess amount received over and above the premium to be treated as income of the assessee - Held that:- There is no concealment of income or furnishing of inaccurate particulars of income. The question whether the excess amount received over and above ₹ 1,26,73,685/- was income of the assessee is a matter to be decided by the Assessing Officer. Therefore, this cannot be considered to be a concealment of income. The assessee apparently disclosed pension plus regular policy availed from AVIVA Life Insurance company and also the amount received on surrender of policy. Therefore, even in this case, there is no concealment of income. The entire particulars were available before the Assessing Officer. Business expenditure disallowance the Assessing Officer found that a sum of ₹ 2,05,220/- was paid for security services of residence of the assessee. The fact remains that the entire facts were placed before the Assessing Officer and the assessee claimed the same as deduction. Mere claim, as rightly pointed out by the Ld.counsel, cannot be construed as concealment of income or inaccurate particulars of income. Addition u/s 14A - the dividend income of ₹ 71,19,981/- was also disclosed by the assessee and the assessee claimed deduction as provided under Section 14A of the Act. The Assessing Officer by applying Rule 8D of Income-tax Rules, 1962 disallowed ₹ 5,24,393/- out of ₹ 71,19,981/-. When the entire facts were available before the Assessing Officer, it cannot be said that there is a concealment of income or furnishing of inaccurate particulars of income. Moreover, the interest on delayed payment of TDS was placed before the Assessing Officer and the assessee claimed deduction. It does not mean that the assessee has concealed particulars of income. Similarly, details of prepaid expenses of ₹ 1,98,990/- were also available before the Assessing Officer. Short term capital gain, the assessee retired from partnership firm with effect from 19.08.2008 and received a lump sum compensation from partnership firm over and above the capital contribution by way of immovable property. This was considered to be a short term capital gain. The fact remains that the assessee retired from partnership firm and received a lump sum compensation from the firm. This was disclosed before the Assessing Officer. Therefore, there is no question of any concealment of income or furnishing inaccurate particulars of income. In those circumstances, this Tribunal is of the considered opinion that the judgment of Apex Court in Reliance Petroproducts (P) Ltd. [2010 (3) TMI 80 - SUPREME COURT] is squarely applicable to the facts of the case. Therefore, the CIT(Appeals) has rightly deleted the disallowance made by the Assessing Officer. - Decided in favour of assessee. Penalty u/s 271(1)(c) - mere claim of expenditure would not amount to furnishing of inaccurate particulars of income or concealing any part of income. In view of the above, this Tribunal has no hesitation to confirm the order of the CIT(Appeals). Penalty levied u/s 271AAB - assessee offered an additional income under the head “Income from Other Sources" in search operations - Held that:- It is not the case of the Revenue that any incriminating or other material was found during the course of search operation which represents wholly or partly the undisclosed income of the assessee. It is a definite case of the Revenue that the assessee offered an additional income of ₹ 50 Crores. Therefore, offer made by the assessee is not admitted on the basis of any material or document, bullion, etc. Therefore, as rightly found by the CIT(Appeals), this cannot be construed as undisclosed income for the purpose of levy of penalty under Section 271AAB of the Act. Hence, the CIT(Appeals) has rightly deleted the penalty levied - Decided against revenue
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