TMI Blog2022 (9) TMI 928X X X X Extracts X X X X X X X X Extracts X X X X ..... me which was concealed or stated inaccurate particulars of income. But the assessee never concealed nor stated any inaccurate particulars of income related to rental income. The arrear rent was not taken during the assessment year 2012-13 because the rent was already declared in the year in which it was related. The application of section 25B in itself clarificatory in nature. The assessment order is debatable in nature. There is no deliberate attempt on the part of the assessee and it is not a fit case to impose penalty u/s 271(1)(c) on the assessee as the conduct of the assessee if seen in context of preceding years as set-out above does not warrant imposition of the penalty u/s 271(1)(c) - we find that no attempt has been made by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rear rent received from the assessment year 2012- 13 from BSNL. The rent was received as per the order of the Hon ble High Court of Jammu Kashmir at Jammu bearing W.P. No.24/2011, date of order 12.01.2011. The arrear rental income to tune of Rs.1894746/- was received during the assessment year which was not declared in the return of the assessee. The addition was made for contravening of section 25B of the Act for receiving the arrear rent. The notice u/s 271(1)(c) was issued and the penalty @ 100% of tax sought to be evaded amount of Rs.4,06,623/-. The assessee filed an appeal before the ld. CIT(A). The ld. CIT(A) upheld the order of the ld. AO. 4. Being aggrieved, assessee filed an appeal before us by challenging the penalty amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom assessment years 2004-05 to 2012-13 are enclosed APB. 5.2 The said property of the assessee was damaged by the militant attack. The BSNL was the tenant and was not paying the rent. After the order of the Hon ble High Court of Jammu and Kashmir (J K) they paid the arrear rent in the A.Y. 2012-13. But all the rent is declared and each anevery years in which the rent was related. No rent was remained undeclared in end of assessee. 6. The ld. Sr. DR vehemently argued and relied on the order of the ld. AO passed u/s 271(1)(c). The ld. Sr. Dr pointed out relevant para 4.4 of the order of CIT(A) which is extracted as below:- 4.4 Having considered the material available on record, I find that appellant has failed to declare the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not declared in return of incomein earlier years said amount would be taxed in year of receiving the amount. But the assessee declared the rent in earlier years and paid the tax accordingly. In this issue the ld. Sr. DR was unable to bring any contrary fact before the ITAT. The penalty was levied u/s 271(1)(c) of the Act on basis of the income which was concealed or stated inaccurate particulars of income. But the assessee never concealed nor stated any inaccurate particulars of income related to rental income. The arrear rent was not taken during the assessment year 2012-13 because the rent was already declared in the year in which it was related. The application of section 25B in itself clarificatory in nature. The assessment order is d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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