9911796707
TMI Blog2023 (6) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... ning to the Asst. Year 2014-15. By the impugned order, the ld. CIT(A) has confirmed levy of penalty under section 271(1)(c) of the Act. 2. The grounds raised in the appeal are as under: 1. The learned CITA) has erred in confirming the penalty to extent of Rs. 87,096 under Section 271(l)(c) for the disallowance under Section 14A as per Rule 8D and addition of interest of income tax refund under Section 244A inasmuch as the assessee has disclosed both the figures of expenses as well as income in its Profit & Loss Account filed along with the return of income. There is no question of concealing or furnishing inaccurate particulars of income. 2. The learned CIT(A) has erred in confirming the penalty to extent of Rs. 87,096 under Section 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strative expenses to the tune of Rs. 2,04,741/-.And it is on this addition confirmed right upto the ITAT that penalty under section 271(1)(c) of the Act has been confirmed by the ld.CIT(A) . 5. A perusal of order of the authorities below reveals that the exempt income earned by the assessee pertained to investment in shares of only one company i.e. Ganesh Housing Corporation Ltd., being 455102 shares of the said company valued at Rs. 4,09,48,303/-. This was the only investment made by the assessee in relation to which the disallowance under section 14A of the Act was made. It is also a fact on record that this investment was made by the assessee in the financial year 2012-13 pertaining to Asst. Year 2013-14 i.e. the year preceding the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le in law and is directed to be deleted. 6. Vis-à-vis the other addition confirmed, relating to the interest earned on income-tax refund amounting to Rs. 77,126/-, orders of the authorities below reveal that the assessee had received income tax refund during the year amounting to Rs. 25,92,470/- which included interest component of Rs. 1,69,596/- and the assessee had returned out of the same interest of Rs. 92,470/- only. The balance of Rs. 77,126/- was accordingly added to the income of the assessee and brought to tax. The assessee did not contest this addition either before the ld.CIT(A) or before the ITAT acknowledging its mistake. Since the facts reveals that the assessee had offered part of the interest on refund by it, surely ..... X X X X Extracts X X X X X X X X Extracts X X X X
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