2018 (5) TMI 1747

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....of Income-tax, Circle 1, Dehradun New Delhi (hereinafter referred to as 'the Revenue') by filing the present appeals, sought to set aside the impugned order all dated 06.07.2015 passed by Ld. CIT (Appeals), Dehradun qua the assessment years 2010-11, 2011-12 & 2012-13 on the identical grounds inter alia that :- "1. The ld. CIT (Appeals) has erred in law and on facts in deleting the penalty imposed u/s 271(1)(c). 2. That the order of the Ld. CIT (Appeals) be set aside and that of the Assessing Officer be restored." 3. Briefly stated the facts necessary for adjudication of the controversy at hand are : on the basis of assessment order passed under section 143 (3)/148 of the Income-tax Act, 1961 (for short 'the Act') dated ....

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....rought on record all the necessary details in its return of income on the basis of which the AO has made disallowances and then proceeded to initiate the penalty proceedings u/s 271(1)(c) of the Act. 7. In the backdrop of the aforesaid facts and circumstances of the case, order passed by the lower Revenue authorities and arguments addressed by the ld. AR to the parties, the sole question arises for determination in this case is:- "as to whether the assessee has concealed particulars of income or has furnished inaccurate particulars of income during assessment proceedings?" 8. When as on the date of filing the original return it was settled proposition of law that the assessee's business was governed by the Doctrine of Mutuali....

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....en the assessee has accepted the quantum, paid the taxes as well as interest pursuant to the decision rendered by Hon'ble Uttarakhand High Court and confirmed by Hon'ble Apex Court whereby deposit of surplus funds in FDRs are held to be not covered by Doctrine of Mutuality, we are of the considered view that it does not amount to concealment of particulars of income and furnishing of inaccurate particulars of income particularly when all the necessary details were already furnished by the assessee at the time of filing original return in accordance with the settled principles of law as per decision rendered by Hon'ble Apex Court in Chelmsford Club (supra) case. AT the most, assessee has put forth a wrong claim at the time of filing return p....