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2019 (3) TMI 1152 - AT - Income TaxCondonation the delay - negligence on the part of its staff - 27 days delay - HELD THAT:- assessee is prevented by reasonable cause in not getting the appeal filed in time before the Tribunal. Therefore, we condone the delay and proceed to dispose of the appeal on merit. Penalty u/s 271(1)((c) - Exemption of interest income u/S 80P(2) - non disclosure of interest income on deposits not yet matured - HELD THAT:- The assessee has bona fide belief and it has disclosed all complete details. It has given an explanation which was not found to be false. With regard to disallowance out of ghee, it was contended that it has shortage of 15 kgs. of ghee on account of pilferage or wastage. It became inedible, and therefore, it claimed the loss. There was a natural consequence in the working of the assessee-society. Similarly, food items might have deteriorated on account of time gap between the purchases and sales etc. There is no mala fide intention at the end of the assessee. As far as exclusion of interest income from exempt under section 80P(2) is concerned, this disallowance has been confirmed by the CIT(A) after taking into consideration decision in the case of SBI Employees Co. op. Credit & Supply Society Ltd.2016 (7) TMI 516 - GUJARAT HIGH COURT] This decision has come subsequent to the return filed by the assessee. Therefore, prior to this decision, the position was not clear and remained debatable whether interest income from FDR made with nationalised banks will qualify for exemption under section 80P(2) or not. There are certain decisions also which are in favour of the assessee. Considering all these, we are of the view that assessee does not deserve to be visited with the impugned penalty, which is hereby cancelled and ground of the appeal of the assessee is allowed.
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