TMI Blog2017 (8) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... or A.Y. 2012-13, which was e-filed on 30.08.2012. That as the aforesaid ‘Return of income’ for A.Y. 2012-13 was filed by the assessee before the issue of notice u/s 143(2) for A.Y. 2011-12 on 08.09.2012, therefore, we are of the considered view that it can fairly be concluded that such reflection of ‘interest income’ in the return of income for A.Y. 2012-13 clearly reflects the bonafide mistake of the assessee in failing to have reflected the ‘interest income’ during the year under consideration, viz. A.Y. 2011-12, which on coming to the notice of the assessee, was thus voluntarily offered for tax by the assessee. Thus we quash the penalty imposed by the A.O under Sec. 271(1)(c). -Decided in favour of assessee. - I.T.A. No.877/Mum/2016 - - - Dated:- 26-7-2017 - SHRI G. S. PANNU, AM AND SHRI RAVISH SOOD, JM For The Appellant : Shri. Kishor Patel For The Respondent : Shri. V. Justin, D.R ORDER PER RAVISH SOOD, JUDICIAL MEMBER : The present appeal filed by the assessee is directed against the order of the CIT(A)-30, Mumbai, for A.Y. 2011-12, dated 14.12.2015, which in itself arises from the order passed by the A.O under Sec. 271(1)(c) of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Original return of Income filed 20.07.2011 26.07.2010 Notice u/s 143(2) issued selecting the case for scrutiny assessment. 08.09.2012 25.08.2011 Reply to the Notice issued u/s 143(2). 17.09.2012 05.09.2011 Revised Computation of Income filed with the A.O. 22.11.2012 08.11.2012 Additional income offered for tax in Revised Computation of Income. ₹ 24,03,420/- Rs.12,88,273/- Notice u/s 142(1) alongwith questionnaire issued. 06.08.2013 05.10.2012 Assessment framed u/s 143(3). 24.12.2013 22.02.2013 3. That the bifurcated details of the Interest income which had remained omitted to be offered for tax by the assessee in his return of income for the year under consideration, was as under:- S.No. Name of Party Interest Income (Rs.) 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omitted to be included in the returned income, therein held a conviction that the assessee had concealed his income, therefore initiated penalty proceedings under Sec. 271(1)(c) in the hands of the assessee. That the assessee accepted the assessment order and did not assail the same before the CIT(A). 5. The A.O after culminating the assessment proceedings, therein initiated penalty proceedings under Sec. 271(1)(c) in the hands of the assessee. The A.O not finding favor with the submissions of the assessee, and rather being of the view that the assessee had deliberately not disclosed the interest income aggregating to ₹ 20,09,722/- (Rs. 19,78,420/- (+) ₹ 31,302/-), thus vide his order dated. 23.06.2014 imposed a penalty of ₹ 6,21,100/- for concealment of income under Sec. 271(1)(c) in the hands of the assessee. 6. The assessee being aggrieved with the order passed by the A.O imposing penalty of ₹ 6,21,100/- under Sec. 271(1)(c), therein assailed the same before the CIT(A). The CIT(A) after deliberating on the contentions of the assessee, therein concluded that the explanation of the assessee as regards not reflecting the interest income aggregating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at as stood reflected in Form 26AS. 7 The ld. A.R in the backdrop of the aforesaid factual matrix therein averred that the assessee on learning of his inadvertent mistake, wherein the interest income alongwith the claim towards credit of the corresponding TDS had remained omitted to be shown by the assessee, both in the return of income for A.Y. 2010-11 and A.Y. 2011-12, therefore in order to undo the said bonafide mistakes, had filed the respective Revised Computations of income for both of the aforementioned years, therein offering for tax the interest income of ₹ 12,88,273/- and ₹ 20,09,722/-, respectively. The ld. A.R in order to fortify his aforesaid contention, therein drew our attention to the assessment order for A.Y. 2010-11 passed by the A.O u/s 143(3), dated 22.02.2013, placed at Page 39-40 of his Paper Book (for short APB ), wherein the said claim of the ld. A.R stood corroborated. The ld. A.R in the backdrop of the aforesaid facts therein submitted that though the A.O had not initiated any penalty proceedings under Sec. 271(1)(c) in respect of similar Interest income of ₹ 12,88,273/- (supra) which was offered for tax by way of Revised Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012, but prior to raising of any queries by the A.O in respect of the Interest income received by the assessee during the year under consideration, viz. A.Y. 2011-12, therein realizing his inadvertent mistake of having omitted to reflect the interest income aggregating to ₹ 20,09,722/- (supra), therein filed a Revised Computation of Income with the A.O, wherein the aforesaid interest income stood duly reflected. We find 9 that the A.O had accepted the Revised Computation of Income filed by the assessee with him, and therein assessed the latters returned income at the same amount. We are of the considered view that though technically the assessee on realizing his bonafide mistake of having omitted to have reflected the interest income of ₹ 20,09,722/-(supra), thus in order to undo the same, though ought to have filed a revised return of income as contemplated under Sec. 139(5), had however filed a Revised Computation of Income , remaining under a bonafide belief that the same would serve the purpose. We have given a thoughtful consideration to the facts of the case and are of the considered view that as penalty proceedings are quasi criminal proceedings, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R on the order of the coordinate bench of the Tribunal, viz. Income tax Appellate Tribunal C Bench, Mumbai, in the case of Ms. Prema Gopal Rao Vs. DCIT (ITA No. 8653/Mum/2011; dated. 07.01.2015) in support of his aforesaid contention to be well placed. 9. We further find substantial force in the contention of the ld. A.R that now when a similar interest income of ₹ 12,88,273/-(supra) offered for tax by the assessee by way of a Revised Computation of Income in the immediate preceding year, viz. A.Y. 2010-11, had been accepted by the A.O while framing the assessment under Sec. 143(3), and no penalty proceedings under Sec. 271(1)(c) had been initiated in respect of such interest income in the said year, therefore, it was not permissible for the A.O to have adopted a whimsical approach and imposed penalty u/s 271(1)(c) in respect of similar interest income of ₹ 20,09,722/-(supra) which was offered for tax by the assessee by way of Revised Computation of Income during the year under consideration, viz. A.Y. 2011-12. We find that the issue under 11 consideration is squarely covered by the coordinate bench of the Tribunal, viz. Orient Press Ltd Vs. JCIT (20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y. 2010-11, therefore, an inconsistent and whimsical approach on the part of the A.O, therein leading to levy of penalty under Sec. 271(1)(c) in respect of similar interest income which too was offered for tax by the assessee by way of Revised Computation of Income , cannot be sustained in the eyes of law. 10. We further find that the bonafides of the assessee that the aforesaid interest income had inadvertently remained omitted to be reflected in his Return of income for the year under consideration, viz. A.Y. 2011-12, further stands fortified from the very fact that the assessee had duly reflected the interest income relatable to the said advances/deposits in his Return of income for A.Y. 2012-13, which was e-filed on 30.08.2012. That as the aforesaid Return of income for A.Y. 2012-13 was filed by the assessee before the issue of notice u/s 143(2) for A.Y. 2011-12 on 08.09.2012, therefore, we are of the considered view that it can fairly be concluded that such reflection of interest income in the return of income for A.Y. 2012-13 clearly reflects the bonafide mistake of the assessee in failing to have reflected the interest income during the year under c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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