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2014 (3) TMI 616 - ITAT MUMBAIPenalty u/s 271(1)(c) of the Act – Inaccurate particulars furnished – Held that:- The assessee had given his premises on rent and the income therefrom was shown as subscription fees in the P&L A/c - penalty cannot be imposed where issue is debatable or where the AO and the assessee have difference of opinion - As far as disallowance in quantum appeal is concerned it should not result in automatic levy of penalty - For invoking provisions of section 271(1)( c) of the Act, AO has to mention as which particulars were inaccurate – the decision in COMMISSIONER OF INCOME TAX Versus AMIT JAIN [2013 (1) TMI 340 - DELHI HIGH COURT] followed - if amount in question, which forms the basis for the AO to levy penalty, is truthfully reported in the returns and the AO chooses to treat the income under some other head them it cannot be held that the assessee has filed inaccurate particulars or has suppressed the facts - by claiming rental income as business income cannot be held to be furnishing of inaccurate particulars of income - the order of the FAA reversed – Decided in favour of Assessee.
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