TMI Blog2015 (10) TMI 2165X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. during proceeding. As soon as been informed regarding refund & interest thereon, we immediately agreed to add interest part in our income and requested to provide copy of refund order &demand adjustment letter. As requested to A.O during the penalty proceeding that we have not been knowledge of refund interest and also we have been not received till the date any letter of demand adjustment or refund order for the A.Y. 2007-08 & 2009-10 however he has not considered our view and ordering penalty u/s. 271(1)(c). As the ld.First Appellate Authority has not considered this specific plea of the assessee First Appellate Authority has erred in confirming the penalty - Decided in favour of assessee. - ITA No.2127/Ahd/2015 - - - Dated:- 24- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccording to the ld.counsel for the assessee a reply dated 16.1.2013 was given to the AO, wherein it was contended that the alleged refund was recognized by way of internal adjustment. The assessee was not given any amount through the cheque etc. The assessee was not aware about this adjustment and no notice was given to the assessee. The ld.AO in the penalty proceedings has observed that notice under section 271 was issued on 3.6.2013 and 12.6.2013. The assessee did not reply to these notices, hence, it has nothing to say in its defence for the penalty notice. He imposed a penalty of ₹ 75,000/- under section 271(1)(c) of the Act. 4. On appeal, the assessee has filed a statement of fact, running into four lines. In the last line, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence. 9. That we have declared true income on the basis of best of our knowledge, fact and information available with the assessee filed correct return of income without any intension of concealment. 6. The ld.First Appellate Authority has not considered this specific plea of the assessee. Similarly, the AO has also not considered this aspect. The stand of the assessee is that it was not specifically informed about the refund. The adjustment has been made internally, by the department. The moment this fact was brought to the notice of the assessee, it has accepted the income. To our mind, the assessee was not guilty of furnishing inaccurate particulars of income or concealing of income. The ld.First Appellate Authority has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
