2025 (1) TMI 1170

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..... in the earlier round of litigation is about the treatment of interest income, which the authorities below found is to be treated as 'income from other sources' and not as 'income from profits and gains from business or profession' as claimed by the assessee. In our opinion, this cannot lead to any conclusion about assessee having furnished inaccurate particulars of income or even of its concealment or evasion of any tax. The order imposing penalty stands deleted. Decided in favour of assessee.
Justice (Retd.) C.V. Bhadang, President And Shri B.R. Baskaran, Accountant Member For the Appellant : Shri Dinesh R. Shah For the Respondent : Shri R.R. Makwana, Sr. DR ORDER PER JUSTICE (RETD.) C.V. BHADANG, PRESIDENT : Although the dispute i .....

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..... hat the assessee had commenced its business. He, however, found that the interest income was not 'business income' and, therefore, part of the assessment order treating the interest income as 'income from other sources' was maintained. 5. The appellant did not carry the matter any further inasmuch as the loss assessed of Rs. 7,76,645/- was same as the loss returned and in the absence of any tax liability arising out of the appellate order, the same was not challenged and has attained finality. 6. It is after this that the Assessing Officer took up the matter for imposition of penalty and after considering the submission of the appellant, the Assessing Officer vide order dated 29.11.2019 has levied minimum penalty of Rs. 3,24,605/- in acco .....

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..... in respect of interest income earned and, therefore, Explanation 4 to Section 271(1) of the Act has been rightly invoked. 10. We have considered the submissions made and we do not find that the impugned order can be sustained. 11. It is a matter of record and it is not even in dispute that net loss, which was returned, is the same as loss assessed by the Assessing Officer. The only concurrent finding by the Assessing Officer as well as the CIT(A) in the earlier round of litigation is about the treatment of interest income, which the authorities below found is to be treated as 'income from other sources' and not as 'income from profits and gains from business or profession' as claimed by the assessee. In our opinion, this cannot lead to a .....

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