TMI Blog2015 (10) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... ther sources,that under that head the assessee had shown loss,that quantum addition was not challenged by her,that AO and FAA were of the opinion that she had filed inaccurate particulars.The assessee was very well aware about the borrowing of the funds and their utilisation. The claim made by the assessee under the provisions of a particular section (section 57)shows that she knew the implication of such claim.Under the Act,the income of an assessee is one and various sections direct the modes in which the income is to be levied. No one of those sections can be treated as general or specific for the purpose of any one particular source of income ; they are all specific and deal with various heads in which an item of income of an assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order u/s.254(1)of the Income-tax Act,1961(Act) Per Rajendra,AM Challenging the order dt.19.03.2012 of the CIT(A)-28,Mumbai,Assessee has raised following Grounds of Appeal: 1. That the Ld. CIT officer has grievously erred in law and on facts in levying penalty u/s. 271(1)(c) of ₹ 1,40,284/- on the addition made even when all the facts of the case were set before and no withholding of any information was done before the department. The assessee has represented all the particulars of income in the return/computation and no information given in the same is either incorrect or incomplete. All the specifics of the income are furnished. 2. That the Ld. CIT officer has erred in adopting that the assessee has concealed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to the provisions of Section 57, the expenditure incurred for the purpose of earning income can be claimed as deduction even if the connection between the expenditure and earning of income is not direct. 5. The Assessee reserves her right to add, delete, amends, alter, and modify any other grounds of appeal . 2.Assessee,an individual,filed her return of income on 28.07.2007 declaring income at ₹ 32,32, 650/-.Assessing Officer (AO)finalised the assessment on 27.10.2009 u/s.143(3) of the Act determ -ining the income of the assessee at ₹ 36.49 Lakhs.During the assessment proceedings,the AO found that assessee had claimed expenses to the extent of ₹ 4,83,368/- u/s. 57 of the Act.On perusal of the computation of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority (FAA).Before him it was claimed that deduction was available u/s.57 of the Act for the interest expenditure,that the assessee had obtained unsecured loans mainly for investment in shares,that it resulted in capital gains,that the assessee had shown capital gains in her return, that interest paid and the borrowed funds were related to investment and the expenditure claimed for making investment in shares was allowable expenditure. After considering the assessment order,submission of the assessee and penalty order, the FAA held that the expenditure claimed to have been incurred for making investment in shares would be deductible for computing capital gains,that the expenditure claimed under the head income from other sources would a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that the assessee borrowed funds for making investment in shares,that she paid interest for purchasing shares,that she made claim of interest expenditure under the head income from other sources,that under that head the assessee had shown loss,that quantum addition was not challenged by her,that AO and FAA were of the opinion that she had filed inaccurate particulars.The assessee was very well aware about the borrowing of the funds and their utilisation.The claim made by the assessee under the provisions of a particular section (section 57)shows that she knew the implication of such claim.Under the Act,the income of an assessee is one and various sections direct the modes in which the income is to be levied. No one of those sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings for those items.FAA partly allowed the appeal of the assessee.Tribunal allowed/rejected the appeal filed by assessee/AO for sustaining /deleting the penalty by the FAA.Department Challenged the matter before the Hon ble jurisdictional high Court.The assessee had contested the additions made in its case and were both were decided against it.In the matter before us,the assessee choose not to challenge the finding of quantum proceedings.Not only this the assessee had admitted before the AO that there was omission on her part. But,explanation filed by her was not found bona fide by both the authorities.Once the assessee filed explanation and it is found to be not genuine,penalty u/s.271(1)(c)has to levied.In our opinion that facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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