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TMI Blog2017 (12) TMI 415X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of orders of the authorities below, material available on record and the decisions relied upon. 3. The relevant facts are that the assessee company engaged in the business of professional activities of architects and engineering, had declared its income of Rs. 5,02,84,793/- in its return of income during the year. The case was selected for scrutiny and assessment was framed under section 143(3) of the Act. During the course of assessment it was noticed by the Assessing Officer that assessee company has leased out two properties, one at Gurgaon to Spencers Retail Ltd. and another at Ghaziabad to M/s. Aero Club and M/s. Universal Fashion Wears. The Assessing Officer noted further that out of these two properties, rental income was declared only from the property at Shop No. S-13, EDM, Kaushambhi, Ghaziabad and rental income from property at Gurgaon was not disclosed by the assessee company. Show cause notice was issued to the assessee to explain the reasons for not disclosing the rental income from its property at Gurgaon. In response the assessee company offered the rental income from the property at Gurgaon amounting to Rs. 25,20,000/- for taxation. The assessee company furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nos. 1 to 5 of the paper book, which is the assessment order for assessment year 2009-10. Page Nos. 17 to 41 of the paper book contains copy of return, audit report in balance sheet, which shows [at page 22 of the paper book] cash method of accounting and since rent was shown as business income, the income was offered on the basis of cash method of accounting only. The ld. AR placed reliance on page No. 43 of the paper book, which is copy of letter to the Assessing Officer which shows that the rent of Gurgaon property was received on 16.06.2008 [Page Nos. 65 & 66 of the paper book] i.e. in assessment year 2009-10 and therefore, as per cash method of accounting it was offered to tax next year and credit for TDS was also claimed in assessment year 2009-10. Page No. 17 of the paper book is the computation for assessment year 2008-09 and page No. 5 of the paper book shows that there was no impact of tax by showing rental income in assessment year 2009-10 instead of assessment year 2008-09 as the tax rate being same. Page No. 47 is explanation to the Assessing Officer. The ld. AR placed reliance on page Nos. 48 to 54 of the paper book, which are submissions during the penalty proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.07.2015 [Punjab & Haryana High Court]; (vii) Sri Nilaya AR Projects Vs. ITO in ITA. No. 1572/Hyd./2013 dated 4.01.2017. 3.5 The ld. Sr. DR, Shri Anil Kumar Sharma, on the other hand, placed reliance on the orders of the authorities below. He submitted that the assessee came forward with the payment of due tax, avoided by it on the concealed income. The assessee had filed inaccurate particulars of its income, hence the Assessing Officer was justified in invoking the provisions laid down under section 271(1)(c) of the Act for levy of penalty in question. 3.6 After having gone through the orders of the authorities below, we find that the penalty under section 271(1)(c) at Rs. 9,07,790/- on the addition of Rs. 26,70,763/- on account of furnishing inaccurate particulars of the income regarding non-declaration of the rental income from property at Gurgaon, offering an amount of Rs. 74,789/- as rental income from the property at Ghaziabad and non-disallowance made under section 14A of the Act. During the course of assessment proceedings, when the above fact was pointed out by the Assessing Officer to the assessee and show cause notice was issued, calling for explanation of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 009-10 after the issue was raised by the Assessing Officer in the assessment year 2008-09. Copy of the assessment order for assessment year 2009-10 was also filed with the copy of return, audit report and balance sheet showing that cash method of accounting was followed and since rent was shown as business income, the income was offered on the basis of cash method of accounting only. It was submitted that the rent of Gurgaon property was received on 16.06.2008 i.e. in the assessment year 2009-10 and, therefore, as per cash method of accounting it was offered to tax next year and credit for TDS was also claimed in the assessment year 2009-10. It was contended by the assessee that no impact of tax by showing rental income in assessment year 2009-10 instead of assessment year 2008-09 was there as the tax rate being same. The assessee submitted that TDS certificate for Gurgaon property was issued consolidatedly for two years by the tenant and that also contributed to the offering of rental income on receipt basis. In support the assessee has filed copies of payment advices, consolidated TDS certificate showing amount after 31.03.2008, ledger of rent received for assessment years 2008-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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