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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 ..... d 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 Rs. 4,21,061 u/s. 271(1)(c) of the Income tax Act, 1961 (the Act) though a) the Appellant had furnished all the information, explanations, relevant facts and materials during the assessment proceeding and no particulars submitted by the appellant were foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sources being interest received from Hiranandani Constructions Pvt Ltd., amounting to Rs. 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 Constructions Pvt Ltd. In response, the assessee vide letter dated 04.04.2016 submitted that, it has neither concealed particulars of income nor furnished inaccurate particulars of income, because interest received from the builder has n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 24(b) of the Act. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 4. The Ld. AR for the assessee, at the time of hearing submitted that the Ld. CIT(A) was erred in confirmed penalty levied by the A.O u/s 271(1)(c) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Rs. 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 Rs. 13,62,658/- under the head income from other sources. The sole reason for not claiming interest deduction and not offering interest income for tax is that if you consider interest payment to bank and interest received from the builder the net result under the head income from other sources is loss at Rs. 56,777/-. No doubt, the assessee needs to disc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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