TMI Blog2019 (3) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... of 15 kgs. of ghee on account of pilferage or wastage. It became inedible, and therefore, it claimed the loss. There was a natural consequence in the working of the assessee-society. Similarly, food items might have deteriorated on account of time gap between the purchases and sales etc. There is no mala fide intention at the end of the assessee. As far as exclusion of interest income from exempt under section 80P(2) is concerned, this disallowance has been confirmed by the CIT(A) after taking into consideration decision in the case of SBI Employees Co. op. Credit & Supply Society Ltd.2016 (7) TMI 516 - GUJARAT HIGH COURT] This decision has come subsequent to the return filed by the assessee. Therefore, prior to this decision, the po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide intention to get its appeal delayed before this Tribunal. Therefore, delay in filing the appeal may be condoned and the appeal of the assessee be adjudicated on merit. 3. After considering the submissions of the assessee, we are of the view that the assessee is prevented by reasonable cause in not getting the appeal filed in time before the Tribunal. Therefore, we condone the delay and proceed to dispose of the appeal on merit. 4. Assessee has filed its return of income on 13.11.2014 declaring total income at NIL. On scrutiny of the accounts, it revealed to the AO that the assessee has earned interest income from fixed deposits made with State Bank of India (SBI). According to the AO, there was a difference of interest income a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 1 appended to section 271(1)(c) of the Act. Hence, penalty deserves to be imposed upon the assessee. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 5. We have considered rival contentions and gone through the record. Section 271(1)(c) of the Income Tax Act, 1961 has direct bearing on the controversy. Therefore, it is pertinent to take note of the section. 271. Failure to furnish returns, comply with notices, concealment of income, etc. (1) The Assessing Officer or the Commissioner (Appeals) or the CIT in the course of any proceedings under this Act, is satisfied that any person (a) and (b)** ** ** (c) has concealed the particulars of his income or furnished inaccurate particulars of such income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfied, that the assessee has; (i) concealed his income or furnished inaccurate particulars of income. As far as the quantification of the penalty is concerned, the penalty imposed under this section can range in between 100% to 300% of the tax sought to be evaded by the assessee, as a result of such concealment of income or furnishing inaccurate particulars. The other most important features of this section is deeming provision regarding concealment of income. The section not only covered the situation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uations provided in Explanation 1 appended to section 271(1)(c) makes it clear that that when this deeming fiction comes into play in the above two situations then the related addition or disallowance in computing the total income of the assessee for the purpose of section 271(1)(c) would be deemed to be representing the income in respect of which inaccurate particulars have been furnished. 7. In the light of the above, if we examine the facts of the present case, then it would reveal that the assessee has given explanation with regard to disclosure of interest income from fixed deposits with nationalized banks. It was contended by the assessee that it did not receive interest income because fixed deposits were not matured in this year. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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