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TMI Blog2020 (4) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... has been directly paid to Hiranandani constructions Pvt Ltd. Since the installment paid for purchase of flat is in excess of amount needs to be paid, in the schedule of payments the developer has paid interest of ₹ 13,62,658/- calculated @ 12% on excess money received before the due date of payment from the assessee. The assessee has paid interest on housing loan to Kotak Mahindra Bank a sum of ₹ 14,19,435/-, and did not claim deduction towards interest paid on housing loan u/s 24(b) of the Act. The assessee has also not offered interest income interest received from Hiranandani Constructions Pvt Ltd., of ₹ 13,62,658/- under the head income from other sources. Sole reason for not claiming interest deduction and not offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he following grounds of appeal: 1) The learned Hon'ble CIT (A) erred in not holding that the order of penalty passed under section 271(1)(c) of the Act is bad in law as the notice issued under section 274 read with section 271 of the Act is not discernible as to whether the penalty proceedings is initiated for furnishing inaccurate particulars of income or for concealing the particulars of income and therefore, the impugned order passed deserves to be quashed on the facts and circumstances of the case and in law. 2) On the facts and circumstances of the case and in law, the learned Hon'ble Commissioner of Income tax (A) erred in confirming the levy of penalty of ₹ 4,21,061 u/s. 271(1)(c) of the Income tax Act, 1961 (t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of ₹ 21,86,340/-. The assessment has been completed u/s 143(3) of the Act, on 17.02.2016, determining the total income at ₹ 36,84,480/- by making various additions including additions towards income from other sources being interest received from Hiranandani Constructions Pvt Ltd., amounting to ₹ 13,62,658/-. The assessee has accepted the assessment and no appeal has been filed against assessment order. Thereafter, the A.O has initiated penalty proceedings u/s 271(1)(c) of the Act, and issued show cause notice u/s 274 of the Act, dated 17.02.2016 and called upon the assessee to explain as to why penalty shall not be levied for concealment of particulars of income in respect of interest received from Hiranandani Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A). Before the CIT(A), the assessee has reiterated its submissions made before the A.O and argued that interest received from Hiranandani Constructions Pvt Ltd., has not been offered to tax, because interest paid on housing loan to bank is more than the amount of interest income and the assessee has not claimed loss in the return of income filed for the year. The CIT(A) after considering the relevant submissions of the assessee and also taken note of various facts confirmed penalty levied by the A.O, on the ground that the assessee has failed to offer any explanation for not offering interest income for tax even though said income is taxable under the head from other sources, despite the fact that the assessee claims interest u/s 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d., on 28.01.2011 and said loan has been directly paid to Hiranandani constructions Pvt Ltd. Since the installment paid for purchase of flat is in excess of amount needs to be paid, in the schedule of payments the developer has paid interest of ₹ 13,62,658/- calculated @ 12% on excess money received before the due date of payment from the assessee. The assessee has paid interest on housing loan to Kotak Mahindra Bank a sum of ₹ 14,19,435/-, and did not claim deduction towards interest paid on housing loan u/s 24(b) of the Act. The assessee has also not offered interest income interest received from Hiranandani Constructions Pvt Ltd., of ₹ 13,62,658/- under the head income from other sources. The sole reason for not claimin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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