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TMI Blog2024 (4) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... his own but after detection it was declared and paid taxes HELD THAT:- Admittedly, the assessee has filed information in the return of income in regard to remuneration and interest on capitals received from the partnership firm - This fact is disclosed by assessee in its original return of income and original return of income was processed u/s. 143(1) of the Act but assessee claimed these two items i.e., remuneration received as a partnership firm and interest on capital receipt from partnership firm on presumptive basis u/s. 44AD of the Act and declared net profit @ 8%. We agree with the argument of ld. Senior DR that the assessee cannot make such claim and this is not allowable and this position has been clarified in the case of Anandkum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose items as business receipts instead of declaring it as profit on gross basis. Thus this is not a fit case levy of penalty u/s. 271(1)(c) of the Act. There is no concealment of particulars of income or new evidences found by the AO for making any kind of addition. Appeal filed by the assessee is allowed. - Shri Mahavir Singh, Vice President And Shri S.R. Raghunatha, Accountant Member For the Appellant : Shri G. Baskar, Advocate For the Respondent : Shri D. Hema Bhupal, JCIT ORDER PER MAHAVIR SINGH, VICE PRESIDENT: This appeal by the assessee is arising out of the order of the Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi in Order No.ITBA/NFAC/S/250/2023- 24/1058367382(1) dated 30.11.2023. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly, he added this remuneration and interest on capitals claimed to have been gross receipts and added to the returned income of the assessee amounting to Rs. 12,08,900/-. This quantum addition was not challenged by assessee before CIT(A) and it has become final. The AO while framing assessment initiated penalty proceedings u/s. 271(1)(c) of the Act for furnishing of inaccurate particulars of income and for concealment of particulars of income. The AO noted that the assessee has concealed the income to the extent of Rs. 12,08,900/- by declaring the remuneration and interest on capital as gross receipts and declared the same u/s. 44AD of the Act and claimed to have been earned profit @ 8%. The AO noted that the assessee ought to have decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inaccurate particulars of income because all the particulars were available before the AO along with the return of income originally filed. The ld. counsel for the assessee stated that 8% income was admitted on correct amount of interest and remuneration. The ld. counsel stated that there is no scope to detect anything because gross amount on account of remuneration and interest on capitals received from firm was available on record of the Department in term of return of income filed by assessee and hence, there cannot be any case of furnishing of inaccurate particulars of income or levy of penalty. The ld. counsel for the assessee argued that it is not possible to construe the original return alone in isolation without reference to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income in regard to remuneration and interest on capitals received from the partnership firm M/s. ANS Gupta Jewels as partner. This fact is disclosed by assessee in its original return of income and original return of income was processed u/s. 143(1) of the Act but assessee claimed these two items i.e., remuneration received as a partnership firm and interest on capital receipt from partnership firm on presumptive basis u/s. 44AD of the Act and declared net profit @ 8%. We agree with the argument of ld. Senior DR that the assessee cannot make such claim and this is not allowable and this position has been clarified by the Hon ble High Court of Madras in the case of Anandkumar, supra. But, we noted that all the facts relating to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticulars of income relating to remuneration received from firm and interest on capital invested with the firm. Once this is a fact, it means that there is no issue as regards to concealment of particulars of income. 7.2 In the given facts and circumstances, we are of the view that in the present case, the particulars are declared by assessee in his return of income and the assessee has only claimed those items as business receipts instead of declaring it as profit on gross basis. Going by the ratio laid down by Hon ble Supreme court in the case of Reliance Petroproducts Ltd., supra, we are of the view that this is not a fit case levy of penalty u/s. 271(1)(c) of the Act. There is no concealment of particulars of income or new evidences fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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