2025 (4) TMI 1257

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..... e of Rs. 8,24,340/-. The Assessing Officer completed the assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') on 11.12.2018. Subsequently, the case was reopened by the JAO u/s 147 of the Act on the ground that the assessee has claimed excess carry forward of loss amounting to Rs. 22,49,410/-. During the course of re-assessment proceedings the assessee submitted that it has paid rent to the party Universal Transducers at Rs. 7,80,000/- which was not claimed in the Profit and Loss Account and the same was parked in Current Assets in the Balance Sheet. In order to make this correction the assessee filed its revised return of income on 28.02.2018. However, while revising the return of income, deduction of Rs. .....

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..... g the penalty wherein the learned AO initiated the concealment penalty proceedings for Limb-2 (i.e. furnishing of inaccurate particulars) and levying the concealment penalty on Limb-1 (i.e. concealment of particulars of income). The appellant contends that such a mismatch is fatal to the levy of penalty. 3. Learned CIT(A) erred in levying a concealment penalty without appreciating that, all relevant particulars related to the computation of income were duly available on record. The appellant contends that the particulars of income were never concealed. 4. Learned IT Authorities further erred in law and on facts in not appreciating that, such a double deduction of interest and remuneration to partners was not in keeping with section 40(b .....

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..... s. Reliance Petroproducts Pvt. Ltd. reported in 322 ITR 158 (SC), he submitted that the penalty levied by the Assessing Officer and sustained by the Ld. CIT(A) / NFAC was not justified. 6. The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC. 7. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. It is an admitted fact that the assessee in the revised return had claimed remuneration and interest paid to the partners amounting to Rs. 7,10,648/- and Rs. 15,83,107/- respectively twice which was rectifie .....

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