TMI Blog2023 (6) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... O to delete the entire penalty levied under section 271(1)(c) - Grounds of appeal raised by the assessee are allowed. - ITA No. 205/SRT/2023 - - - Dated:- 31-5-2023 - Shri Pawan Singh, Judicial Member For the Assessee : Shri Mehul Shah, C.A For the Revenue : Shri Vinod Kumar, Sr-DR ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as NFAC/Ld. CIT(A) ] dated 17.02.2023 for assessment year 2016-17, which in turn arises out against the penalty levied by Assessing Officer/ Income Tax Officer, Ward-3(3)(5) Surat, under section 271(1)(c) of the Income Tax Act, 1961 (hereinafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the basis of two year s average agricultural income worked out the average agricultural income per bigha at Rs.18,942/- and made addition of Rs.1,57,600/-. The Assessing Officer further noted that assessee has utilized interest bearing fund for investment of non-business asset like purchase of immovable property. The assessee has paid interest of Rs.3,31,118/- which was obtained through interest bearing fund and used for non-business purposes. The Assessing Officer made addition by taking view that assessee offered the said amount of Rs.3,31,118/- for taxation. The assessing officer initiated penalty on both the additions. 3. The Assessing Officer before passing the penalty order issued show cause notice to assessee and in response to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee offered himself, during the assessment. Therefore, there was no occasion for Assessing Officer to levy such penalty. To support his submission, Ld. AR for the assessee relied upon the following case law: Price Waterhouse Coopers Pvt. Ltd. vs. CIT [2012] 77 DTR 0153 (2012) 253CTR 0001, (2012) 348 ITR 0306, (2012) 211 Taxman 0040 (SC) Narindera Industries Vs. ACIT (2015) 44 CCH 0846 (Chd-Trib) (2016) 176 TTJ 0035 (Chd) DCIT vs. Nepa Ltd. (2014) 41 CCH 0531 (Indore-Trib) (2014) 112 DTR 0212 (Ind) (2015) 167 TTJ 0124 (Ind) CIT vs. Reliance Petroproducts (P.) Ltd. (2010) 36 DTR 0449, (2010) 230 CTR 0320, (2010) 322ITR 0158, (2010) 189 Taxman 0322 (SC) Shailesh Jayendra Bhadalia vs. ITO-33(3)(4),Mumbai ITA No.7224/M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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