TMI Blog1990 (12) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... is case for the assessment year 1974-75 on March 31, 1980. The return of income for the assessment year 1974-75 was filed by the assessee-company on July 31, 1974, showing a total income of Rs. 53,64,400. In the profit and loss account for the year ending on March 31, 1974, relevant to the assessment year 1974-75, the assessee had credited an amount of Rs. 2,77,708 under the head "Interest on unsecured loans". The amount of Rs. 2,77,708 included interest under section 214 of the Income-tax Act, 1961, allowed for the assessment year 1967-68 amounting to Rs. 1,14,212 and Rs. 50,558 for the assessment year 1971-72. According to the assessee, the amount of Rs. 2,04,334 included Rs. 1,14,212 "being the interest on income-tax for the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Inspecting Assistant Commissioner of Income-tax without allowing the deduction of Rs. 1, 14,212 in the assessment year 1974-75 and the final assessment order under section 143(3)/144B of the Income-tax Act, 1961, was passed on August 10, 1977. Thus, the inclusion of the amount of interest under section 214 for the assessment year 1967-68 amounting to Rs. 1,14,212 in the assessment of the assessee-company for the assessment year 1974-75 had become final. In the course of assessment proceedings, the Assessing Officer initiated penalty proceedings under section 271(1)(c) of the Income-tax Act, 1961, in respect of concealment and inaccurate particulars filed in the return relating to the incorrect claim of deduction of Rs. 1,14,212 on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was liable to penalty under section 271(1)(c). Accordingly, the Assessing Officer imposed a penalty under section 271(1)(c) of the Income-tax Act, 1961, amounting to Rs. 2,00,000 by his order dated March 31, 1980. Being aggrieved by the order of penalty passed by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). It was contended on behalf of the assessee before the Commissioner of Income-tax (Appeals) that the assessment order for the assessment year 1967-68 was passed on February 25, 1972, wherein the assessee was granted interest under section 214 of the Income-tax Act, 1961, amounting to Rs. 1,15,145 on the amount of refund. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1974-75 instead of writing "assessable in earlier year". After considering the facts and circumstances of the case and hearing the contentions of both the sides, the Tribunal came to its finding that, as the assessee had disclosed Particulars of interest under section 214 of Rs. 1,14,212 both in the statement of details of interest received and also in the return of income filed for the assessment year 1974-75, the assessee could not be charged with concealing its income or furnishing inaccurate particulars of income for the assessment year 1974-75, warranting the imposition of penalty under section 271(1)(c). The Tribunal, therefore, cancelled the penalty order under section 271(1)(c).On the aforesaid facts, the following question of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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