TaxTMI 
TaxTMI 
2014 (3) TMI 616
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....ed to appreciate that there is no concealment of income attracting penalty u/s 271(1)(C) of the Income Tax Act. 3. On the facts and circumstances of the case and in law the learned CIT(A) has failed to appreciate that the claim of the assessee was debatable/disputed and Hon'ble Mumbai High Court has also admitted the assessees quantum appeal arising out of the regular assessment. 4. The appellant craves to add, alter, modify any grounds of appeal before or at the time of hearing. 2. In this case assessment was completed u/s. 143(3) of the Act, on 23. 01. 2004, determining total income of the assessee at Rs. 16, 17, 340/-as against returned income of Rs. 3, 43, 578/-. The increase in the assessed income over the returned income was on acc....
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....e and the penalty order, FAA held that from the return of Income and the P&L a/c. , filed for the relevant previous year, it was found that the rental income was shown as subscription income, that there was no indication anywhere either in the return of income or in the P&L a/c that the said subscription income constituted rental income, that only on specific queries raised by the AO nature of this income could be ascertained, that the impugned receipt was on account of rental income, that it was not a case of legal claim, that a case of legal claim could be made out only when the assessee would come out with all the facts by making full disclosure, that the assessee had nowhere disclosed in the return of income that the subscription income....
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....as of the opinion that the income was to be charged under the head income from House property and he held that the assessee was not entitled to claim depreciation, that FAA had allowed the appeal of the assessee, but the Tribunal had reversed the order of the FAA, that in the subsequent year; while finalising the assessment orders u/s. 143(3) of the Act;AO. s have accepted the claim made by the assessee that disputed income was to assessed as business income. As per the established norms of taxation jurisprudence penalty cannot be imposed where issue is debatable or where the AO and the assessee have difference of opinion. As far as disallowance in quantum appeal is concerned it should not result in automatic levy of penalty. For invoking p....