TaxTMI 
TaxTMI 
2017 (2) TMI 332
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.... and interest income filed return on 11.10.2010 declaring income of Rs. 5,67,84,540/-. The assessment was completed on 30.11.2012 u/s 143(3) determining the income of the assessee at Rs. 5,99,87,180/-. While completing the assessment, the assessing officer noticed that the assessee claimed interest of Rs. 36,56,446/- and repairs and maintenance of Rs. 17,60,937/- as deduction u/s 24 under the head income from house property against the rental income of Rs. 58,69,789/- earned. The assessing officer required the assessee to furnish the details of rent, loan, interest payments, investments etc., and the assessee submitted that an agreement was entered into on 11.01.2007 for purchase of commercial premises i.e. shop no.122 at Prime Mall, Vile P....
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.... The assessing officer initiated penalty proceedings u/s 271(1)(c) of the Act for furnishing inaccurate particulars in respect of the excess interest claim made under the head income from house property. In the course of penalty proceedings and in response to show cause notice issued as to why penalty should not be levied the assessee furnished explanation as under : "During the year, the income tax officer has disallowed the interest paid on the loan which was not related to the income earned by the assessee. We have to state that we have not concealed any particulars or furnished inaccurate particulars. The interest was paid on the loan borrowed for the purpose of acquiring the property. The loan account of bank was also furnished duri....
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....within the meaning of section 271(1)(c) of the Act and levied maximum penalty of Rs. 15,20,616/- at 300% of the income sought to be evaded. The assessee preferred appeal before the Ld. CIT (Appeals) and the Ld CIT (Appeals) by order dated 22.05.2013 sustained the penalty against which the assessee is in appeal before us. 5. The Ld. counsel for the assessee submits that the assessee in the course of assessment proceedings filed revised computation and recomputed the interest allowable against rental income. The Ld. counsel for the assessee submits that it is only a mistake in the claim for deduction of interest and this mistake was also happened to be made even in earlier years also. He submits that there is no concealment of income or fu....
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....owever, for the 2010-11, no such revised return was filed. The intentions of the assessee in claiming entire interest as deduction from house property income does not appear to be bonafide. The case law relied on by the assessee have no application to the facts of the present case. 8. The submissions of the assessee have been elaborately considered by the Ld. CIT (Appeals) and held that the assessee has deliberately and intentionally made a false claim of excess interest against house property income to defraud the revenue observing as under : "1.3. I have considered the submissions of the appellant, order of the A.O. and facts of the case carefully, it is noticed that in the assessment order, the A.O. has made disallowance of excess ....
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....lowed by the AO. while passing assessment order u/s 143(3). In AY. 2009-10, the revised return was filed for accurate claim of interest relating to house property. In the A.Y. 2010-11, the assessee could not revise the return due to a lapse on her part as it had escaped her attention. During the assessment proceedings, revised calculation was submitted before the AO. To strengthen its view, the AR has relied on the decision of hon'ble Supreme Court in the case of Reliance Petroproducts (supra). From the perusal of the submissions and facts of the case, it is undisputed issue that the assessee has taken loan of Rs. 4 crores, out of which Rs. 2,54,65,000/- was utilized for the purpose of other investments not related to acquiring of th....
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.... aware that he has taken a loan of Rs. 4 crores out of which Rs. 2,51,65,000/- were utilized for other investments not related to acquiring of house property, therefore, the assessee was liable to claim interest against the house property income only the balance loan and not on the whole amount of Rs. 4 crores. But the assessee has claimed that it was only a mistake, but mistake can occur only once or twice. In this case, the assessee itself admitted the false claim on account of excess interest in AY. 2007-08, 2008-09 & 2009-10. The assessee is trying to defraud the revenue by submitting inaccurate particulars in all the years. When confronted, it has revised its return of income. But in the present case, the assessee has not revised its r....