Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Shri Sujata Hemlal Bakhre Versus ITO WD 8 (3) (1) , Mumbai

2017 (2) TMI 332 - ITAT MUMBAI

Penalty levied u/s 271(1)(c) - false claim made towards interest deduction while computing income from house property - Held that:- The assessee has deliberately filed inaccurate particulars in respect of the claim made towards interest deduction while computing income from house property. It is apparent from the facts that entire loan amount was not utilized for purchase of the property on which rental income was earned. Similar deductions were made in the assessment years 2007-08, 2008-09 and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

deliberately and intentionally made a false claim of excess interest against the house property income. However, at the same time, we are of the considered view that this is not a fit case for levy of 300% penalty. Therefore, we direct the assessing officer to levy minimum penalty i.e. 100% of the income sought to be evaded and compute the penalty accordingly. - Decided partly in favour of assessee - ITA NO. 4611/MUM/2013 - Dated:- 3-2-2017 - SHRI D KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI CN .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

laring income of ₹ 5,67,84,540/-. The assessment was completed on 30.11.2012 u/s 143(3) determining the income of the assessee at ₹ 5,99,87,180/-. While completing the assessment, the assessing officer noticed that the assessee claimed interest of ₹ 36,56,446/- and repairs and maintenance of ₹ 17,60,937/- as deduction u/s 24 under the head income from house property against the rental income of ₹ 58,69,789/- earned. The assessing officer required the assessee to fur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ank has sanctioned loan to the assessee. The assessing officer noticed that the interest payment of ₹ 36,56,446/- on the loan of ₹ 4,00,00,000/- has been claimed as deduction under section 24 of the Act. The assessing officer required the assessee to furnish the details of utilizing of the said loan of ₹ 4,00,00,000/- and in response to the same, assessee submitted that the residential house was purchased for ₹ 82,00,000/- and agricultural land for ₹ 90,00,000/- and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

terest at ₹ 13,56,084/- as allowable deduction against rental income. The assessing officer recomputed the income from house property and allowed this interest of ₹ 13,56,084/- as deduction and balance interest of ₹ 23,00,362/- was disallowed. 3. The assessing officer initiated penalty proceedings u/s 271(1)(c) of the Act for furnishing inaccurate particulars in respect of the excess interest claim made under the head income from house property. In the course of penalty proceed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ished during the course of assessment proceedings. It has been held by various judgements that the penalty cannot be imposed on disallowance of expenses. 4. The assessing officer, however rejected the explanation of the assessee holding that the intentions of the assessee in claiming deduction for interest does not appear to be bonafide and the assessee has intentionally not complied with the provisions of the Act and furnished inaccurate particulars of income. The assessing officer held that ou .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed. He also observed that for the assessment year 2009-10, the assessee has revised its return and admitted income of ₹ 27,77,899/- as against income of ₹ 4,76,538/- admitted in the original return. The assessing officer observed that for the assessment year 2010-11 no revised return has been filed and this shows that the assessee has been in the habit of claiming excessive interest expense against house property income. Thus, he concluded that assessee has deliberately filed inaccur .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

interest allowable against rental income. The Ld. counsel for the assessee submits that it is only a mistake in the claim for deduction of interest and this mistake was also happened to be made even in earlier years also. He submits that there is no concealment of income or furnishing of inaccurate particulars and the assessee has made full disclosure of particulars. He places reliance on the following decisions and submits that mere making of claim which is not sustainable in law by itself will .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sustained. 7. We have heard the rival submissions, perused the orders of the authorities below. On careful reading of the orders of the authorities below, we find that the assessee has deliberately filed inaccurate particulars in respect of the claim made towards interest deduction while computing income from house property. It is apparent from the facts that entire loan amount was not utilized for purchase of the property on which rental income was earned. Similar deductions were made in the as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o application to the facts of the present case. 8. The submissions of the assessee have been elaborately considered by the Ld. CIT (Appeals) and held that the assessee has deliberately and intentionally made a false claim of excess interest against house property income to defraud the revenue observing as under : 1.3. I have considered the submissions of the appellant, order of the A.O. and facts of the case carefully, it is noticed that in the assessment order, the A.O. has made disallowance of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the house property income. The return for AY. 2009-10 was revised by the assessee. After rectifying this mistake in the year under consideration, the assessee has repeated the same false claim of interest on the total amount of ₹ 4 crores against the house property income. The AO. has made a disallowance of excess interest claimed at ₹ 23,00,362/- and initiated penalty proceedings u/s 271 (1 )(c). The assessee has not filed appeal against this disallowance, thus, the AO. has issued n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 2008-09, the interest was disallowed by the AO. while passing assessment order u/s 143(3). In AY. 2009-10, the revised return was filed for accurate claim of interest relating to house property. In the A.Y. 2010-11, the assessee could not revise the return due to a lapse on her part as it had escaped her attention. During the assessment proceedings, revised calculation was submitted before the AO. To strengthen its view, the AR has relied on the decision of hon'ble Supreme Court in the cas .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e by claiming the interest on ₹ 4 crores against income from house property. In this way, the assessee has claimed excess interest of ₹ 23,00,362/-. When confronted by the A.O. during the assessment proceedings, the AR has admitted that it has made a false claim and submitted a correct calculation before the AO. The A.O. has made disallowance and initiated penalty u/s 271 (1 )(c). In the penalty proceedings, the A.O. has given opportunity and after considering the reply of the appell .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version