TMI Blog2012 (8) TMI 514X X X X Extracts X X X X X X X X Extracts X X X X ..... attracted since there was no concealment or furnishing of inaccurate particulars with regard to factual aspects which had clearly been disclosed by the appellant. Further, AO has not brought on record to show that the contention of the assessee is wrong in respect of the rent charged to others who are not the directors or otherwise interested parties being at par. Therefore, deletion of penalty u/s 271(1)(c) upheld - Decided in favor of assessee. - ITA No. 724/PN/2011 - - - Dated:- 26-6-2012 - Shri G.S. Pannu And Shri R.S. Padvekar, JJ. Appellant by : Shri. Alok Mishra ORDER Per R.S. Padvekar, JM In this appeal, the revenue has challenged impugned order of the Ld CIT(A)-V, Pune dated 24.2.2011. for the A.Y. 2004-05 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 12AA of the Act for the reason that the assessee is a Market Committee and not doing any charitable work. Assessee challenged the order of the Ld. CIT-V before the Tribunal and Tribunal directed the Ld. CIT-V to grant the registration and accordingly, the assessee was granted registration u/s. 12AA on 11.6.2007. During the course of assessment proceedings, the A.O found that the assessee Committee has given shops to his Directors and their relatives on long term lease for 99 years and was charging rent only at the rate of Rs. 500/- per annum. The A.O. made the enquiry in respect of the rent fixed by the assessee committee and found that the rent charges were much higher than the charges received from the Directors and their relatives. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts or truth, it refers factual details and information about income and cannot be extended to issues of taxability of an income, admissibility of a deduction or interpretation of law. Interpretation of law can never be a factual aspect. That the deeming fiction under Explanation 1 to Sec.271(1)(c) also relates only to factual aspects. It can only be pressed into service in connection with facts material to the computation of income and not in connection with computation of income per se. Further, this deeming fiction only shifts the onus of proof to the assessee, and a penalty can only be imposed when there is no explanation by the assessee or when the explanation given by the assessee is found to be false or when the assessee provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acceptable to the Revenue, that by itself would not, in our opinion, attract the penalty under Section 271(1) . If We accept the contention of the Revenue then in case of every Return where the claim made is not accepted by Assessing Officer For any reason, the assessee will invite penalty under Section 271(1)(c ). That is clearly not the intendment of the Legislature. 12. In the instant case, in Para-21 of the assessment order the learned AO has pointed out that in the audit report in Form No.10B filed with the return of income, the appellant had inter alia submitted as below: 2. Whether any land, building or other property of the trust/institution was made or continued to be made, available for the use of any such person ..... X X X X Extracts X X X X X X X X Extracts X X X X
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