9911796707
TMI Blog2023 (3) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2013-14. 2. The brief facts of the case is that the assessee is a Co. Operative Society providing credit facility to its members. For the Assessment Year 2013-14, the assessee filed its Return of Income claiming deduction u/s. 80P(2)(a)(i) of Rs. 16,43,080/-. 2.1. During the assessment proceedings, the Assessing Officer found that the assessee was in receipt of aggregate interest income from deposits with nationalized banks of Rs.20,85,266/- and interest on Income Tax Refund of Rs. 22,863/-. The assessee called upon to explain why the aggregate interest income should not be taxed under the head "Income from Other Sources" and disallowing the claim of deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the AO. Accordingly, Ground No. 1 of the appeal is partly allowed." 5. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1.1 The order passed u/s.250 on 11/03/2022 for A.Y.2013-14 by NFAC Delhi, upholding the penalty of Rs.5,04,622/- imposed u/s.271(1)(c) by AO in respect of disallowance of deduction of Rs.16,43,080/-u/s.80P(2)(a)(i) towards interest income from Nationalized Bank is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. NFAC has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned disallowance. 2.1 The Ld. NFAC has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment was not available at the time of filing of the Return of Income, thus there is no inaccurate particulars of income by the assessee. Thus the Ld. A.R. pleaded to delete the entire penalty. 6. Per contra, the Ld. Sr. D.R. Shri Atul Pandey appearing for the Revenue supported the orders passed by the Lower Authorities and requested to confirm the levy of penalty u/s. 271(1)(c) of the Act, as the assessee intentionally filed inaccurate particulars of income and thereby dismiss the assessee's appeal. 7. We have given our thoughtful consideration and perused the materials available on record. The issue in the present case revolves around whether the assessee has furnished "inaccurate particulars of income" with respect to the interest inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y observing that the word "inaccurate" signifies a deliberate act or omission on the part of the assessee. Thus, to arrive at the conclusion that, the assessee has furnished "inaccurate particulars of income", it has to be tested whether it has been done so with the dishonest intent, which cannot be regarded as an innocent act. In other words the element of consciousness in furnishing "inaccurate particulars of income" coupled with circumstantial evidences should be present in the particular case. Unless, the characters of "inaccurate particulars of income" as discussed above are present in any particular case, the penalty provisions under section 271(1)(c) of the Act cannot be attracted. 7.2. In our considered view, there is an explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the interest income from the nationalized bank after making reliance on the judgment of Hon'ble Gujarat High Court in case of State Bank of India which was passed on 25th April 2016 reported in 72 Taxman.com 64. However, Income Tax Return for A.Y. 2013-14 filed by the assessee on 14-10-2013, much prior to the date of Jurisdictional High Court, which implies that the rulings/principles laid down by the Hon'ble Gujarat High Court was not available at that relevant time. Thus the assessee under the bonafide believe has claimed the deduction under section 80P(2)(a)(i) of the Act, with respect to the interest income as discussed above. 7.4. Thus, in our considered view, the claim of the assessee at the most can be regarded as "inaccurate cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
