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TMI Blog2023 (2) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be a case of concealment of income or furnishing of inaccurate particulars of income per se. The levy of penalty under Section 271(1)(c) is thus not attracted. Coupled with this, notice issued under Section 274 r.w. Section 271(1)(c) has been stated to be issued in a mechanical manner without striking of the inappropriate portion from the notice. It is thus not known the exact nature of default committed by the assessee. Hence when seen cumulative, assessee deserves to be exonerated from the clutches of penalty under Section 271(1)(c) of the Act. Appeal of the assessee is allowed. - I.T.As. No.5711, 5712 & 5713/DEL/2018 - - - Dated:- 3-2-2023 - Shri Pradip Kumar Kedia, Accountant Member And Shri Yogesh Kumar Us, Judicial Memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee required in terms of provision of Section 194A of the Act and consequently disallowance were carried out under Section 40(a)(ia) of the Act. In the matter, the ld. counsel pointed out that the payees are reputed companies and the corresponding income have been included in the respective returns of the payees. Thus, no additions/disallowances under Section 40(a)(ia) are permitted in view of plethora of judicial precedents. Notwithstanding, the imposition of penalty under Section 271(1)(c) for disallowances under deeming provisions of Section 40(a)(ia) where the interest has been paid as a matter of fact, is not justified. 5. We find merit in such contentions. The Tribunal has set aside the issue of disallowance under Section 40(a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel pointed out that the assessee had received Rs.10 lakh in aggregate from ten different trusts which were alleged to be non genuine and consequently the additions were made under Section 68 of the Act and interest of Rs.1,02,740/- thereon was also added. In this backdrop, the ld. counsel adverted to the ledger account of the lenders trusts and submitted that similar credits have been received from these trusts in the earlier years also which has not been disturbed and accepted as genuine in the earlier years. The assessment orders of the trust were also adverted to reinforce the claim of the assessee that the lender trusts are bona fide and genuine. It was further contended that the additions have been made by invoking the doctrine o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 (Assessment Year 2011-12) 14. Briefly stated, the assessee declared Rs. 20,69,370/- in its return of income for Assessment Year 2011-12 in question and addition of Rs.20,78,500/- was made in the quantum proceedings. However, an amount of Rs.1,30,000/- approx. was only sustained in the second appeal before the Tribunal. The ld. counsel submits that aforesaid amount of Rs.1,30,000/- represents interest on loan of Rs.10 lakh disallowed in Assessment Year 2010-11 as discussed in ITA No.5712/Del/2018 supra. 15. For the reasons narrated in Assessment Year 2010-11 (supra), we see no justification in retaining the penalty imposed on such interest disallowance. The penalty imposed under Section 271(1)(c) is thus deleted. 16. In the resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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