| The Tax Publishers2020 TaxPub(DT) 4506 (Hyd-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where issue of netting off of the interest or treating the interest income earned by assessee as taxable under the head 'Income from other sources' was a debatable issue, thus, merely because claim of assessee was not accepted or was not acceptable to revenue, that, by itself, would not attract the penalty under section 271(1)(c).
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Penalty under section 271(1)(c) - Validity - Debatable issue - Issue of netting off of the interest or treating the interest income earned by the assessee as taxable under the head 'Income from other sources'
AO imposed penalty under section 271(1)(c) on allegation that assessee concealed particulars of income because interest earned from fixed deposit was not included as income under the head 'Income from other sources' in return of income.Held: The issue of netting off of the interest or treating the interest income earned by the assessee as taxable under the head 'Income from other sources' was a debatable issue considering facts and circumstances of case of the assessee. Assessee took one possible view which was rejected by revenue authorities but assessee brought out all facts before revenue along with return of income. Therefore, at the most it can be only treated as a claim of the assessee, which was not sustainable in law.
Followed:CIT v. Reliance Petroproducts Pvt. Ltd. (2010) 189 Taxman 322 (SC) : (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC).
REFERRED : CIT v. Bokaro Steel Limited (1999) 236 ITR 315 (SC) : 1999 TaxPub(DT) 1094 (SC), Tuticorin Alkali Chemicals & Fertilizers Ltd. v. CIT (1997) 227 ITR 172 (SC) : 1997 TaxPub(DT) 1304 (SC), Continental Construction Limited v. CIT (1992) 195 ITR 81 (SC) : (1992) 60 Taxman (SC) : 1992 TaxPub(DT) 1016 (SC), India Cements Limited v. CIT (1966) 60 ITR 52 (SC) : 1966 TaxPub(DT) 278 (SC), Ntpc Sail Power Company Pvt. Ltd. v. CIT (2012) 25 Taxmann.com 401 (Del-HC) : 2012 TaxPub(DT) 3140 (Del-HC), Indian Oil Panipat Power Consortium Limited v. ITO (2009) 315 ITR 255 (Del-HC) : 2009 TaxPub(DT) 1494 (Del-HC), CIT v. Ram Honda Power Equip (2007) 289 ITR 501 (Del-HC) : 2007 TaxPub(DT) 899 (Del-HC), HK. Investment Co. Pvt. Limited v. CIT (1995) 211 ITR 511 (Guj.) : 1995 TaxPub(DT) 0225 (Guj-HC), Kedar Narain Singh v. CIT (1938) 6 ITR 167 (All) : 1938 TaxPub(DT) 29 (All-HC), JF. Laboratories Ltd. v. ITO (2005) 96 ITD 448 (Mum-Trib) : 2005 TaxPub(DT) 1410 (Mum-Trib) and Mandideep Engg. & Packaging Industries (P.) Ltd. v. Dy.CIT (2001) 77 ITD 307 (Ind-Trib) : 2001 TaxPub(DT) 377 (Ind-Trib).
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, HYDERABAD BENCH
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