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TMI Blog2023 (3) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the Ld. National Faceless Assessment Centre. Kolkata (the Assessing Officer) under section 271(1)(C) of the Act levying penalty of Rs.4,56,362 is without jurisdiction, illegal, invalid, bad-in-law being passed against the facts and laws of the case. ii. That the Ld, Assessing Officer erred in confirming the penalty of Rs.4,56,362/- levied by the Assessing Officer under section 271(1)(c) of the Act without recording proper satisfaction within the meaning of section 271 of the Income Tax Act, 1961. iii. That on the facts and circumstances of the case, the Assessing Officer erred in levying the penalty of Rs.4,56,362 when the assessee was prevented by reasonable and sufficient cause, within the meaning of section 275 of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licable was Rs. 100.27 lacs. However, the ld. AO noticed that no ITR was filed u/s 139 of the Act by the assessee and a notice was issued upon the assessee u/s 148 to file his return of income. In consequent to that the assessee computed his taxable income and he had paid legitimate tax and thereafter he filed his return of income u/s 148 of the Act dated 25.04.2018. Prior to the above fact, the ld. AO made roving enquiries and requested the assessee to furnish various details, information, evidences and clarifications etc. In compliance to that the assessee had filed various details, evidences which were asked for in the assessment proceedings by the ld. AO. During the assessment proceeding, the ld. AO also issued notices u/s 133(6) to M/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted before us that the assessee has received monthly rental compensation during the year consideration aggregating to Rs. 79,500/- for the alternative accommodation which is a compensation on account of assessee's family displacements from the accommodation and the said compensation is towards meeting/overcoming the hardship and it is in the nature of capital receipt in the hands of assessee, therefore, it is not liable to be taxed. However, during the assessment proceedings, the assessee to buy complete peace of mind from further litigation, he had already paid taxes on such compensation received from the developer treating the same as income in his hand. Therefore, in such circumstances no further penalty can be imposed upon the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account of hardship faced by owner of the flat due to displacement of the occupants of the flat. The said payment is in the nature of hardship allowance / rehabilitation allowance and is not liable to tax. The case of the assessee is squarely supported by the decision of the Co-ordinate Bench in the case of Shri Devshi Lakhamshi Dedhia vs. ACIT in ITA No.5350/Mum/2012 wherein similar issue has been decided in favour of the assessee, the relevant operative portion is reproduced hereunder:- 15. We have considered the rivals submissions and perused the materials on records. We note that the assessee received compensation of Rs. 19,50,873/- from the developer when the building in which the assessee owned flat went for re-development as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g are not liable to tax and the order passed by the first appellate authority cannot be sustained. Thus the order of CIT(A) is reversed and ground is allowed in favour of the assessee. 16. In the result, appeal of the assessee is partly allowed, as above. 6. Respectfully following the co-ordinate Bench decision, we set aside the findings of the ld. CIT(A) on this issue and direct the AO to delete the addition made of Rs.2,60,000/-. Accordingly, the ground No.6 is allowed. 7. We respectfully follow the co-ordinate bench decision, we find that in the case of assessee, ld. AO cannot imposed penalty on the sum of Rs. 79,500/- being rent paid by the developer on behalf of the assessee for alternative accommodation during the development pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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