9911796707
TMI Blog2014 (7) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... ference of the interest income being actually less and an excess claim for deduction u/s 80P(2)(d) of the Act - the AO has himself allowed deduction u/s 80P(2)(d) - the interest on sinking fund stands in fact suo motu disallowed by the assessee, resulting in effect to a lower claim and allowance of deduction u/s 80P(2)(d) to that extent – there was also non-claim of any standard deduction on the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11, dismissing the levy of penalty u/s.271(1)(c) of the Income Tax Act, 1961 ( the Act hereinafter) for the assessment year (A.Y.) 2003-04 vide order dated 24.03.2009. 2. The background facts of the case are that the assessee, a co-operative housing society s, income and expenditure (I E) account for the relevant year was observed to bear a credit of ₹ 4,01,476/- by way of interest on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to use the terrace space of the society s building, for setting up the mobile relay station/s), by treating it as income from other sources as against income from house property . Penalty proceedings were also initiated. The assessee failing to furnish any explanation, penalty stood levied at ₹ 7,81,153/-, i.e., at 100% of the tax sought to be evaded. We are presently concerned with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich are only co-operative societies engaged in the business of banking, so that the same is exigible to deduction u/s.80P(2)(d). Deduction there-under stands in fact allowed by the A.O. himself in assessment. What, then, is the controversy about? Rather, we observe the assessee to have claimed interest on sinking fund (at ₹ 1,57,181/-) per its income and expenditure account, and which may le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axable income, paying tax at ₹ 2,21,621/-. The charge of claim of mutuality by the assessee, as made by the ld. CIT(A), and which forms the basis of his confirming the penalty, is thus untrue. Looked at from any angle, thus, the Revenue s case is without any merit. The levy of impugned penalty is accordingly directed for deletion. We decide accordingly. 4. In the result, the assessee s ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
