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TMI Blog2016 (12) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus, we delete the penalty levied u/s 271(1)(c) of the Act. - Decided in favour of assessee - Income Tax Appeal No.4346/Mum/2014 - - - Dated:- 21-10-2016 - SHRI RAJENDRA, AM AND SHRI C.N.PRASAD, JM For The Assessee : None For The Revenue : Shri N.Sathya Moorthy ORDER PER C.N.PRASAD (J.M.) : This appeal is filed by the assessee against order of CIT(A)-31, Mumbai dated 16.5.2014 for Assessment Year 2009-10 in sustaining the penalty levied u/s 271(1)(c) of the Act. 2. Briefly stated, the facts are the assessee is engaged in agency business of selling industrial machinery and earned commission from agency business. He filed a return of income on 23.9.2009 declaring total income of ₹ 71,95,842/-. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply stating that he has relied on the TDS certificates issued by the Bank of Baroda and based on those certificates, he has offered the interest income of ₹ 1,35,168/- in the return. He further submitted that it was only during the assessment proceedings the assessee came to know that interest income of ₹ 4,89,029/- accrued on fixed deposits with Bank of Baroda and suo motu revised the income statement and offered to tax. Therefore, it was contended that there is no deliberate concealment of income or furnishing of inaccurate particulars of income. However, the Assessing Officer passed an order u/s 271(1)(c) of the Act levying penalty of ₹ 1,36,278/- stating that assessee offered interest income only ₹ 1,35,168/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased on the written submissions, we proceed to hear the ld. DR and dispose of the appeal on merits. 6. The ld. DR submits that there is a deliberate act of furnishing of inaccurate particulars of income by the assessee in not reporting the interest income entirely. The ld. DR vehemently supporting the orders of the CIT(A) submits that there is concealment or furnishing of inaccurate particulars of income by the assessee, therefore, the authorities below were justified in levying penalty u/s 271(1)(c) of the Act. The assessee in its written submissions contended that based on the TDS certificates issued by Bank of Baroda, assessee has offered interest amounting to ₹ 1,26,029/- and ₹ 9,139/- totalling to ₹ 1,35,168/- unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from page Nos 13 to 24, submission dated 12 September 2011 together with relevant annexure filed with the AO during the assessment proceeding explaining the difference between AIR information and computation of income. Your honour will observe that the TDS certificate filed with the AO was for ₹ 17,047 (Please refer page Nos 16 and 17) issued by the bank. The Appellant had never received new TDS certificate (matching with AIR) from the bank and hence the Appellant had never submitted it to the AO. 12. The Appellant is maintaining bank account with Bank of Baroda, Versova branch and has kept fixed deposit (cumulative) with the same bank. 13. As a practice, the Appellant always obtained certificate from the bank for interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that interest on fixed deposits kept with Bank of Baroda was ₹ 483,296 and taxes deducted thereon was ₹ 48,295 for year ended 31 March 2009. Further, interest on fixed deposit with HDFC Bank was ₹ 5,733 and tax deducted therefrom was ₹ 1,076. Accordingly, the Appellant has revised income from fixed deposit at ₹ 489,029 (ie ₹ 483,296 plus ₹ 5,733) and sue motto paid additional tax of ₹ 119,506. 18. From the above it may be noted that the Appellant relied on the certificate issued by Bank of Baroda and offered interest income in the return of income. There was no intention to evade taxes on the interest. 8. Alongwith the written submissions, assessee also furnished TDS certificates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn is accompanied by a guilty mind, the section cannot be invoked for imposing penalty. He also placed reliance on the decision of the jurisdictional High Court in the case of CIT v. M Bhuta Co., 103 ITR 183 for the proposition that in the absence of deliberate concealment of income or furnishing of inaccurate particulars, penalty imposed should not be justified. 9. We have gone through the written submissions, perused the orders of the authorities below and heard the ld. DR. In this case, the assessee apparently reported the interest income on fixed deposit from Bank of Baroda based on the certificates issued by Bank of Baroda. Bank of Baroda has also given a statement showing the interest payable to the assessee which is tallying ..... X X X X Extracts X X X X X X X X Extracts X X X X
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