TMI Blog2019 (9) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... ible for computing partners remuneration. Without going to the correctness of the eligibility of remuneration from income generated under the head income from other sources , we firmly think that the action of the assessee cannot be discarded summarily on the face of divergent views prevailing on the subject. Thus, as claimed, the issue thus not free of debate at the time of filing of return by the assessee. The action of the assessee thus falls within the bracket of bonafide belief. In such circumstances, furnishing inaccurate particulars of income by the assessee cannot be alleged as contemplated under s. 271(1)(c) of the Act. In so far as inclusion of capital gains of maturity of mutual funds is concerned, it is noticed that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-5, Ahmedabad ( CIT(A) in short), dated 30.12.2014 arising in the penalty order dated 28.03.2013 passed by the Assessing Officer (AO) under s. 271(1)(c) of the Income Tax Act, 1961 (the Act); concerning A.Y. 2008-09. 2. The assessee by way of its grounds of appeal has challenged the imposition of penalty on additions/disallowances as under: 1.1 The order passed u/s.250 on 30-12-2014 for A.Y.2008-09 by CIT(A)-5, Abad upholding the penalty levied u/s. 271(1)(c) in respect of additions towards partners remuneration, interest income and capital gain on redemption of mutual fund is wholly illegal, unlawful and against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act although the partners were HUF and no service could be rendered by them. The assessee objected to the same by its written reply in the assessment proceedings. However, the AO rejected the explanation and made the disallowance of entire remuneration of ₹ 32,37,616/-. The AO further observed that the assessee had paid manuscript expenses of ₹ 76,700/- without making TDS and consequently, disallowance was carried under s.40(a)(ia) of the Act. The AO made other disallowances and completed the assessment assessing the total income at ₹ 81,35,210/-. 4. The CIT(A) in first appeal granted partial relief. Meanwhile, the AO passed order of rectification under s.154 of the Act whereby the disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e heads of income are eligible for computing partners remuneration. Without going to the correctness of the eligibility of remuneration from income generated under the head income from other sources , we firmly think that the action of the assessee cannot be discarded summarily on the face of divergent views prevailing on the subject. Thus, as claimed, the issue thus not free of debate at the time of filing of return by the assessee. The action of the assessee thus falls within the bracket of bonafide belief. In such circumstances, furnishing inaccurate particulars of income by the assessee cannot be alleged as contemplated under s. 271(1)(c) of the Act. 8. In so far as inclusion of capital gains of maturity of mutual fund ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
