The Tax Publishers2020 TaxPub(DT) 3271 (Rkt-Trib)

INCOME TAX ACT, 1961

Section 271(1)(c)

Since interest income not disclosed by assessee was less than 1% of income declared by assessee, therefore, it could be said that assessee failed to disclose such interest income in IT Return without any dishonest intent and accordingly, no penalty could be levied under section 271(1)(c).

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Leviability - Non-disclosure of interest income without dishonest intent

AO levied penalty under section 271(1)(c) as regards non-disclosure of interest income by assessee in IT Return.Held: Assessee declared taxable income in IT Return amounting to Rs. 41,99,530 whereas interest income stood at Rs. 34,912 which was less than 1% of income declared by assessee. Thus, it could be said that assessee failed to disclose such interest income in IT Return without any dishonest intent. Thus in such circumstances, there could not be any penalty for addition made to total income on account of such interest income.

REFERRED : Reliance Petro Products (P) Ltd. reported in (2010) 322 ITR 158 (SC) : 2010 TaxPub(DT) 1683 (SC)

FAVOUR : In assessee's favour.

A.Y. : 2013-14

INCOME TAX ACT, 1961

Section 271(1)(c)

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