2010 (3) TMI 1205

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....Building Heavy- Repair Fund. The receipts were not offered to tax on the belief that principle of mutuality would apply as these are received from outgoing/ incoming members. The A.O. has not accepted the contention and the said amount was brought to tax. The matter was carried to the Tribunal which confirmed the addition made by the A.O. Consequently the A.O. finalised the penalty proceedings under section 271(1)(c), even though it was submitted that the assessee has furnished all the details and they were under the bonafide belief that the transfer funds has been considered as exempt under the principle of mutuality and even if the same was considered as taxable receipt, the necessary expenditure incurred on Building Heavy Repair Funds sh....

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....been done based on decisions which have been rendered after the transfer of these flats. It is true that the assessment to tax the receipts of the amounts received by the appellant from outgoing/incoming members has been confirmed by the higher appellate authorities, but at the same time when it filed the return of income, there existed a difference of opinion which was evident from the case laws cited by the appellant. Moreover, the appellant had disclosed all these information in its statements of accounts clearly. Therefore, it is difficult to hold that the appellant had concealed its income or filed inaccurate particulars of income. In view of this conclusion which has been arrived at, the penalty levied u/s. 271(1)(c) is deleted." 3....