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of <h1>Tax Appeal Dismissed: Genuine Dispute Over Income Classification</h1> <h3>Commissioner Of Income Tax-II Versus M/s Balaji Motors Pvt. Ltd.</h3> Commissioner Of Income Tax-II Versus M/s Balaji Motors Pvt. Ltd. - TMI Issues:1. Whether deliberate declaration of income under a wrong head constitutes furnishing inaccurate particulars of incomeRs.2. Whether changing the head of income by the Assessing Officer amounts to furnishing inaccurate particulars of incomeRs.Analysis:1. The appeal pertains to the Assessment Year 2001-02, where the respondent-assessee, a private limited company engaged in letting out properties and sale of automobiles, disclosed rent income under 'Income From Business.' The Assessing Officer reclassified the income under 'Income From House Property,' initiating penalty proceedings under section 270(1)(c) of the Income Tax Act. The Commissioner of Income Tax (Appeals) allowed the appeal, setting aside the penalty, which was challenged by the Revenue before the Tribunal.2. The Revenue contended that the deliberate misclassification of income by the assessee constituted furnishing inaccurate particulars of income, attracting penalty under section 271(1)(c) of the Act. However, both the Commissioner of Income Tax (Appeals) and the Tribunal found a genuine difference of opinion between the assessee and the department regarding the proper classification of income. They held that this difference did not attract Explanation (1) to section 271(1)(c) of the Act, as it was a matter of interpretation rather than deliberate concealment.3. The High Court upheld the Tribunal's decision, stating that the findings were based on evidence and material on record, devoid of legal flaws. The Court concluded that no substantial questions of law arose from the appeal, leading to the dismissal of the appeal. The judgment emphasizes the importance of genuine disputes in tax assessments and the distinction between deliberate concealment and interpretational disagreements in declaring income under different heads.
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