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TMI Blog2020 (9) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the AO during the course of assessment proceedings as well as penalty proceedings and by the ld. DR at the time of hearing before us, we are of the view that the mistake of the assessee in understating its interest income from bank to the extent was bona-fide one and it gets further fortified by the fact that credit for the tax deducted at source from the said income by the bank was not claimed by the assessee in the return of income filed for the year under consideration. We, therefore, find ourselves in agreement with the CIT(A) that this is not a fit case where assessee can be said to have concealed particulars of its income or furnished inaccurate particulars of such income as contemplated u/s 271(1)(c) and the penalty imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4,70,15,520/- but the income from bank interest as declared by the assessee was only ₹ 1,84,89,512/-. In this regard, it was explained on behalf of the assessee that the concerned bank i.e. Bank of Maharashtra had inadvertently created two clients ID out of which the interest income relating to only one client ID amounting to ₹ 1,84,89,512/- was communicated to the assessee. It was submitted that the interest income amounting to ₹ 2,85,26,008/- relating to other client ID was accumulated to Fixed Deposits and only when the same was received by the assessee in the immediately succeeding year relevant to A.Y. 2012-13, the assessee came to know about the same and offered it to tax in the return of income for the A.Y. 2012-13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submissions made by the assessee. Section 271(1)(c) is attracted where in the course of any proceedings under the Act, the Assessing Officer or the first appellate authority is satisfied that (a) any person has concealed the particulars of his income, or (b) has furnished inaccurate particulars of such income. The expressions has concealed and has furnished inaccurate particulars have not been defined either in the section or elsewhere in the Act. However, notwithstanding differences in the two circumstances, they lead to the same effect, viz. keeping off a certain portion of income. The former is direct while the latter may be indirect in its execution. The word conceal is derived from Latin word concelare which implies to hide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... communication made by the Bank and did not claim credit for TDS of the full amount of ₹ 66,85,682/- but had claimed credit for the amount which was reflected in Form 16A issued by the deducting Bank i.e. ₹ 36,33,076/- only. In my opinion, this is not a case of concealment of income because concealment implies an action of hiding or withdrawing from observation or to cover or keep away from sight or to prevent discovery of or to withhold knowledge of an event. In the instant case, the assessee was not in the knowledge of the fact of the Bank crediting its account with interest to the tune of ₹ 2,85,26,008/-. A person cannot hide from another anything about which it does not possess the knowledge of. Hence, this is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al explanation was offered by the assessee in support of the alleged undisclosed income from bank interest at the stage of the assessment itself that the interest income from bank was understated because of the mistake committed by the concerned bank i.e. Bank of Maharashtra. As explained by the assessee during the assessment proceedings, the bank had inadvertently created two clients ID for the assessee and a certificate in Form No.16A was issued by the bank only in respect of one client ID showing the interest income earned by the assessee at ₹ 1,84,89,512/-. The interest income related to other client ID of ₹ 2,85,26,008/- earned during the year under consideration was never informed by the bank to the assessee and even Form ..... X X X X Extracts X X X X X X X X Extracts X X X X
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