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2022 (9) TMI 928 - ITAT AMRITSARPenalty u/s 271(1)(c) - Addition was made on basis of the contravening section 25B of the Act related to arrear rent received duly assessment year which was not declared in the return of income for A.Y. 2012-13 - HELD THAT:- The arrear rent which was not declared in return of income in earlier years & said amount would be taxed in year of receiving the amount. But the assessee declared the rent in earlier years and paid the tax accordingly. In this issue the DR was unable to bring any contrary fact before the ITAT. The penalty was levied u/s 271(1)(c) on basis of the income which was concealed or stated inaccurate particulars of income. But the assessee never concealed nor stated any inaccurate particulars of income related to rental income. The arrear rent was not taken during the assessment year 2012-13 because the rent was already declared in the year in which it was related. The application of section 25B in itself clarificatory in nature. The assessment order is debatable in nature. There is no deliberate attempt on the part of the assessee and it is not a fit case to impose penalty u/s 271(1)(c) on the assessee as the conduct of the assessee if seen in context of preceding years as set-out above does not warrant imposition of the penalty u/s 271(1)(c) - we find that no attempt has been made by the assessee in the preceding years to conceal the rental income. The penalty levied by the AO amount is liable to be quashed. Assessee appeal allowed.
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