9911796707
TMI Blog2025 (5) TMI 1485X X X X Extracts X X X X X X X X Extracts X X X X ..... The order of the Income tax officer and CIT Appeal is against facts and law of the case. Penalty is always levied on deliberate misreporting in the form of underreporting of income or overstating of losses to evade taxes. Here all the incomes of the assessee is tax free and carried forward of interest could have been disallowed but instead it is alleged that figures have been misreported which is wrong. The learned officer would have seen from the records that the assessee is an NRI and all his income are exempted front Taxes. Issue is about carrying forward of losses from House property which at the most could have been disallowed to be carried forward without deeming it as misreported losses and penalty imposed of Rs. 6,07,848/- under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her appeal before the CIT(A) who upheld the denial of carry forward of loss. It is relevant to mention here that the ld. AR during the course of hearing submitted that the assessee has not preferred any further appeal against the order of the CIT(A). 3. Subsequently the AO initiated penalty proceedings under section 270A of the Act for misreporting of income by the assessee. The AO issued a show-cause notice to the assessee asking the assessee to file the explanations in this regard. The assessee in response to the notice submitted that all information has been provided during the course of assessment and that the acquisition of property was entirely made out of the funds belonging to the assessee. The assessee further submitted that his p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not enter into any formal rental agreement since he was on sail. The ld. AR further submitted that the assessee's parents are super senior citizens and therefore are not in a position to understand the compliance requirement with regard to entering into rental agreement. The ld. AR also submitted that mere fact that the rental agreement was not made available was only reason for denial of carry forward of loss under the head "Income from House Property" and that the same cannot be treated as misreporting of income by the assessee. The ld. AR also pointed out that another reason for denial of carry forward of loss is that the entire interest has been claimed by the assessee whereas certificate is in the name of three persons. The ld AR s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord. The assessee is a non-resident working in ship and has no taxable income in India. For the year under consideration, the assessee has claimed interest on housing loan to the tune of Rs. 16,80,532/- against a rental income of Rs. 1,20,000/-. The AO while completing the assessment denied the benefit of carry forward of the loss for two reasons. One the assessee has not substantiated that the property was actually let out and the second reason is that the assessee owns the property with his parents and therefore cannot claim the entire interest. It is submitted that the impugned property is being self-occupied by the parents of the assessee and only for 4 months i.e. from 01.04.2020 to 30.04.2020 i.e. during the Covid period the property ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
