2013 (6) TMI 823 - AT - Income Tax

Summary

Issues involved: Appeal against penalty imposed u/s 271(1)(c) for concealment of income related to interest on enhanced compensation claimed u/s 10(37).

Summary:
The appeal was filed against the penalty imposed u/s 271(1)(c) by the Assessing Officer for concealment of income related to interest on enhanced compensation claimed u/s 10(37). The Assessing Officer subjected the interest amount to tax and penalty proceedings were initiated. The appellant contended that the total amount was exempt u/s 10(37) and penalty should not be levied. On appeal, it was argued that the issue was debatable at the time of filing the return and penalty was not justified. The ld. CIT(A) held that penalty is not leviable based on the decision of the Hon'ble Punjab & Haryana High Court. The Revenue argued that the appellant did not show the income from interest in the return, hence penalty was justified. However, it was pointed out that the TDS was duly reflected in the return and interest income was also reflected, though claimed as exempt. The Tribunal found that the issue was indeed debatable at the time of filing the return, and since the appellant accepted the addition post the Supreme Court decision, penalty was not justified. The Tribunal upheld the decision of the ld. CIT(A) and dismissed the appeal of the Revenue.

In conclusion, the Tribunal confirmed the decision of the ld. CIT(A) to delete the penalty imposed u/s 271(1)(c) for concealment of income related to interest on enhanced compensation claimed u/s 10(37).