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TMI Blog2024 (8) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 271(1)(c) of the Act relating to quantum of incorrect deduction under section 54EC of the Act. Quantum of penalty relating to deduction of 54F we are of the opinion that, during the course of assessment proceedings, the assessee repeatedly misrepresented the facts. Therefore, the AO disallowed the deduction, which was confirmed by the Ld.CIT(A), and the Tribunal granted relief to the extent of Rs. 30,00,000/-. There is no doubt that the assessee had claimed wrong deduction u/s. 54F of the Act and, therefore, the AO levied the penalty which was confirmed by the Tribunal. However, it is observed that the assessee's claim under section 54F of the Act, though partially disallowed, was not found to be entirely devoid of merit, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessment Year (AY) 2013-14. Facts of the case: 3. The assessee is an individual having interest on loans and income from house property as main source of income. The assessee filed her return of income for the A.Y. 2013-14 on 14-03-2014 declaring total income of Rs. 8,63,230/-. The case was selected for the scrutiny and the assessment was completed u/s. 143(3) of the Act, after disallowing deduction u/s. 54EC of the Act of Rs. 41,00,000/- and deduction u/s. 54F of the Act of Rs. 20,00,000/-. The AO also initiated penalty proceedings u/s. 271(1)(c) of the Act for furnishing inaccurate particulars. 4. The assessee filed an appeal with the Ld.CIT(A) and the Tribunal relating to disallowing the deductions. The Tribunal vide its order dated 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MA) in the said ITA No.2094/Ahd/2018. The Tribunal as per order dated 27-06-2024 passed in MA No.2/Ahd/2023 decided to recall the Tribunal s order dated 31/10/2022. 4.3. Now, therefore, the assessee is in appeal before us in the recalled matter with the following grounds: 1.1. The order passed u/s. 250 on 25.07.2018 for A.Y.2013-14 by CIT(A)-7, Abad upholding the penalty of Rs. 12,77,200/- imposed u/s. 271(1)(c) in respect of disallowance of exemption u/s. 54F and 54EC made by AO is wholly illegal, unlawful and against the principles of natural justice. 1.2. The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso noted that the deduction u/s 54EC of the Act was not a ground for appeal in the said appeal before the Co-ordinate Bench. We further noted the contents of MA order which recalled the present appeal. The relevant part is reproduced for the sake of clarity: 14. It is clearly evident from the above that during the course of hearing, which took place before the ITAT on various occasions, the assessee in the first instance itself had placed copy of the order of the ITAT in quantum proceedings demonstrating the fact that of having been granted relief to the extent of Rs. 30 lakhs, which was even taken note of by the Bench, when the appeal was first heard on 21.2.2020. Therefore, it cannot be denied that order of the ITAT in the quantum procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the assessee needs to be allowed, which we hold so. We, therefore, of the view that present MA needs to be allowed. Accordingly, we allow the MA filed by the assessee. The order passed in ITA No.2094/Ahd/2018 dated 31/10/22 is recalled and the Registry is directed to list the above appeal of the assessee in the ordinary course of hearing. 7.1. So far as the claim under Section 54EC of the Act to the tune of Rs. 41,00,000/- is concerned, it is observed that the assessee herself admitted that the claim is incorrect and by filing revised statement of income on 19- 10-2015 withdrew the claim u/s 54EC of the Act, which clearly is an act of furnishing inaccurate particulars. Therefore, in our considered opinion, the Revenue rightly impose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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