TMI Blog2020 (2) TMI 1306X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has offered to tax interest income in subsequent financial year, there is no reason for the Ld. AO to levy penalty on the same income for the year under consideration for not offering to tax said income, because the timing difference in offering income to taxes cannot be considered as concealment of particulars of income or furnishing inaccurate particulars of income. AO, as well as the Ld.CIT(A) were erred in levying penalty u/s 271(1)(c) in respect of additions towards interest on income tax refund. Hence, we direct the Ld. AO to delete penalty levied u/s 271(1)(c) - Decided in favour of assessee. - ITA No.6509/Mum/2018 - - - Dated:- 4-3-2020 - SHRI VIKAS AWASTHY, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax, VAT, excise was accounted in the year of receipt or payment of demand. Under the given circumstances there is no concealment of Income nor there has been any fifing of inaccurate particulars of Income and therefore the issue does not fall within the mischief of the provisions of section 271(l)(c) of the Income Tax Act, 1961 and therefore the Assessing Officer be directed to delete the penalty. Grounds of Appeal No. 2 Your Appellants further submits that the addition of Interest in the A.Y. 2012-13 and the same amount of Income has been offered in [he subsequent Year A.Y. 20I3-I4 amounts to double addition and therefore it is against the provisions of Income Tax as (he same income cannot be taxed twice and as the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period and accordingly, levied penalty of ₹ 3,03,756/-, which is equivalent to 200% of tax sought to be evaded. 4. Aggrieved by the penalty order, the assesee preferred an appeal before the Ld.CIT(A). Before the Ld.CIT(A), the assessee contended that the Ld. AO was erred in levying penalty u/s 271(1)(c) of the I.T.Act, 1961, in respect of additions made towards interest received on income tax refund, without appreciating the fact that although, the department has generated income tax refund, but the amount of refund has been received by the assesee during AY 2013-14 and the same has been offered to tax. The Ld.CIT(A) after considering the relevant submissions of the assessee and also by relied upon various judicial precedents, inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... breakup, in respect of refund of taxes and interest. In this regard, he relied upon by the decision of Hon ble Punjab Haryana High court, in the case of CIT vs SSP Pvt.Ltd. 302 ITR 43 6. The Ld. DR, on the other hand, strongly supporting order of the Ld.CIT(A) submitted that the assesee has deliberately concealed particulars of income, in respect of interest received on income tax refund and hence, the Ld. AO, as well as the Ld.CIT(A) were right in levying penalty u/s 271(1)(c) of the I.T.Act, 1961 7. We have heard both the parties, perused the material available on record and gone through orders of the authorities below. The fact with regard to receipt of interest on income tax refund u/s 244A of the Act, 1961 was not disputed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we are of the considered view that once, the fact with regard to taxability of interest income in AY 2013-14 was not disputed by the Ld. AO, then he is erred in levying penalty u/s 271(1)(c) of the Act, 1961 for not offering interest income to tax for the year under consideration, more particularly when, the assessee has explained the reasons for not accounting and considering interest income to tax for the year under consideration. When, the assessee has offered to tax interest income in subsequent financial year, there is no reason for the Ld. AO to levy penalty on the same income for the year under consideration for not offering to tax said income, because the timing difference in offering income to taxes cannot be considered as conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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