TaxTMI 
TaxTMI 
2014 (1) TMI 910
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.... engaged in the business of transportation. Assessee filed his return of income for A.Y. 2008-09 on 30.09.2008 declaring total income at Rs. 1,54,600/-. The case was selected for scrutiny and thereafter the assessment was framed under Section 143(3) vide order dated 24.12.2010 and the total income was determined at Rs. 1,54,600/-. 4. During the course of assessment proceedings Assessing Officer noticed that Assessee had paid interest amounting to Rs. 31,26,330/- to finance company but had not deducted TDS as required under Section 194A of the Act. Accordingly, the aforesaid finance charges was disallowed under Section 40(a)(ia). Assessing Officer also made disallowance on account of interest income of Rs. 10,856/- and addition of Rs. 2 lac....
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....lant got agreed for these additions. No appeal is filed against such addition. It is therefore, despite given proper opportunities during asstt., penalty proceedings by A.O. and appeal proceedings before me, the appellant has no explanation for such addition for which the AO has drawn satisfaction of concealment of income. It is therefore penalty imposed on these two additions are justified. In totality, the A.O. is directed to recomputed penalty on the addition of Rs.10,856 and Rs. 2,00,000 only being imposition of penalty on such amount is confirmed. He is directed to delete the penalty imposed on the addition made u/s.40(a)(ia) of the The appellant gets relief accordingly. In other words, imposition of penalty is restricted to those addi....
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.... CIT(A). 7. It is an undisputed fact that the Assessing Officer had made disallowance under section 40(a)(ia) and also made other additions while framing assessment under section 143(3). On the additions made by the Assessing Officer, penalty under section 271(1)(c) was levied. CIT(A) vide order dated 1st October, 2012 deleted the penalty imposed on the additions made under 40(a)(ia) by relying on various decisions cited by the Assessee. 8. We have heard the rival submissions and perused the material on record. It is an undisputed fact that addition has been made on account of non deduction of TDS on the interest paid to finance companies. The Assessing Officer in his order has nowhere alleged that the payment of interest made to finance ....