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TMI Blog2019 (6) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 2. Appellant, The Mantola Cooperative Thrift & Credit Society, (hereinafter referred to as 'the assessee'), by filing the present appeal sought to set aside the impugned order dated 27.02.2015 passed by the Commissioner of Income-tax (Appeals)- XX, New Delhi, affirming the penalty order dated 03.01.2014 passed u/s 271(1)(c) of the Income-tax Act, 1961 (for short 'the Act'), qua the assessment years 2004-05, 2005-06, 2006-07, 2007-08 & 2009-10 on the identical grounds, except the difference in penalty amount, inter alia that :- "1. That on the facts and in the circumstances of the case, the CIT(A) erred in law in not appreciating the penalty order dated 03.01.2014 passed by the assessing officer under section 271(1)(c) of the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from deposits made in scheduled banks have been treated as "income from other source". 2.3 That the CIT(A) erred on facts and in law in failing to appreciate that the disallowance of deduction made under section 80P of the Act, made in the quantum proceedings was debatable in nature and predicted on bonafide difference of opinion between the appellant and the assessing officer. 3. Without prejudice, that the CIT(A) erred on facts and in law in upholding the amount of penalty (Rs. 30,05,960/-, Rs. 26,24,503/-, Rs. 23,53,217/-, Rs. 20,91,892/- & Rs. 51,96,443/- for AYs 2004-05, 2005-06, 2006-07, 2007-08 & 2009-10 respectively) imposed by the assessing officer, without appreciating that since the appellant was alternatively eligible for de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 6. Ld. AR for the assessee challenging the impugned order contended inter alia that the penalty cannot be levied where there is debatable/vexed legal issue; that assessee has disclosed the facts fully and truly and as such, disallowance of deduction claimed does not attract the provisions of section 271(1)(c) of the Act; that Totgar's Cooperative Sale Society 322 ITR 283 case relied upon by the AO for levying penalty is not applicable to the facts and circumstances of the case and relied upon the decisions cited as Guttigedarara Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction u/s 80P of the Act. It is also not in dispute that Hon'ble High Court upheld the disallowance of deduction claimed u/s 80P(2)(a)(i) on interest income earned from commercial bank but has set aside the matter back to CIT (A) to decide upon the alternative plea of assessee qua deduction of interest income earned of deposits made with cooperative banks/societies u/s 80P(2)(d) of the Act and netting off of proportionate expenses against the interest. It is also not in dispute that against the order of Hon'ble High Court, assessee approached the Hon'ble Supreme Court by way of filing Special Leave Petition in which leave has been granted vide order dated 18.09.2017, order available at page 37 of the paper book. 9. In the backdrop of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities or the court concerned. If the assessee does so then merely because the Departmental authorities concerned or the High Court concerned does not concur with the legal stand adopted by the assessee, that will not be reason enough to hold that the assessee is guilty of concealment of income or furnishing of inaccurate details. 13. But, in the instant case, the assessee is on more sound footing because the order passed by the Hon'ble High Court qua disallowance of deduction u/s 80P(2)(a)(i) of the Act has been challenged by way of filing SLP in which leave has been granted vide order dated 18.09.2017 under Article 136 of the Constitution of India. 14. Hon'ble Gujarat High Court in case cited as Ganesh Land Organisation (supra) held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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