2018 (6) TMI 1179

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.... confirming the penalty of Rs. 55,713/- u/s. 271 (1) (c) imposed by the A.C.I.T- 21 (I)/(new) A.C.I.T-25(2). (2) He failed to appreciate the facts that the appellant in the course of assessment proceeding herself pointed out the inadvertent omission of accrued interest of Rs. 1,80,300/- on 8% GOI bonds and offered the same for taxation without being pointed out by the assessing officer. (3) He failed to appreciate the facts that in the return of income the' related TDS of Rs. 1S,030/- was also not claimed. (4) He failed to appreciate the facts that the appellant's claim of non leviable of penalty is fully covered by the judicial pronouncements cited in the course of appellate proceedings." 2. The brief ....

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....he assessee has furnished inaccurate particulars of income and it is clear that she has no cogent and reasonable explanation for failure to offer interest received from Government of India Bonds in her return of income. Accordingly, the AO levied penalty of Rs. 55,713 u/s 271(1)(c) which is 100% of tax sought to be evaded. 3. Aggrieved by the penalty order, assessee preferred appeal before the CIT(A). Before the CIT(A), the assessee reiterated her submissions made before the AO. The assessee further submitted that she has rectified the inadvertent mistake in filing return of income by filing revised statement of income, including interest received from HDFC Bank Ltd from Government of India Bonds voluntarily. Therefore, the AO was incorr....

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....t income in her return of income. Although the assessee has admitted the lapse before completion of assessment, the fact remains that as per the provisions of section 271(1)(c) where in respect of any facts or material to the computation of total income by any person under the Act and such person fails to offer an explanation or offers an explanation which is found to be false, then the amount disallowed in computing the total income of such person as a result thereof shall for the purpose of this section be deemed to represent the income in respect of which particulars have been concealed, therefore, the AO was right in levying penalty u/s 271(1)(c). Aggrieved by the order of CIT(A), the assessee is in appeal before us. 5. The Ld.AR for....

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....on Government of India Bonds. According to the assessee, the said mistake is an inadvertent mistake without any mala fide intention to evade payment of tax. In the course of assessment proceedings, the said facts were brought to the notice of the AO voluntarily. As a matter of fact, the TDS deducted on said interest amounting to Rs. 18,030 was also not claimed by the assessee in the return of income. Thus, it is very clear that the assessee has omitted to include interest income from Government of India Bonds by mistaken belief of the facts. Therefore, we are of the considered view that there is no reason for the AO to levy penalty u/s 271(1)(c) for furnishing inaccurate of income, more so, when the assessee has voluntarily filed revised st....