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TaxTMI 
TaxTMI 
TaxTMI 
2018 (8) TMI 672
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....ssessing Officer (hereinafter called "the AO") u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter called "the Act") for AY 2010-11. 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called "the tribunal") read as under:- "On the facts and in the circumstances of the case and in law, the Hon'ble CIT(A) erred in confirming the penalty levied by the Assessing Officer u/s. 271(1)(c) of the Income Tax Act, 1961 amounting to Rs. 6, 26, 186/-. The appellant prays that the same may please be deleted. The Appellant craves leave to add, alter, amend or omit any of the grounds of appeal before or during the hearing of the appeal." 3. The brief facts o....
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....ings u/s 271(1)(c) of the 1961 Act were initiated by the AO against the assessee, for furnishing of inaccurate particulars of income in the return of income filed with Revenue . The assessee claimed that it was bonafide mistake and was un-intentional on its part to have claimed said deduction u/s 54F of the 1961 Act which was rejected by the AO which led to the penalty of Rs. 18, 78, 558/- being imposed by the AO u/s. 271(1)(c) of the Act, vide penalty orders dated 23.09.2014 passed by the AO. 4. Aggrieved by the penalty order dated 23.09.2014 passed by the AO u/s 271(1)(c) of the 1961 Act, the assessee filed fist appeal before learned CIT(A) and submitted that due to the following circumstances as enumerated below, the assessee was under ....
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....s eligible for claiming deduction u/s 54F of the 1961 Act and it was an un-intentional mistake due to following reasons as reproduced under which led assessee to make the claim of deduction u/s 54F of the 1961 Act in revised return filed with Revenue:- " The appellant had two residential fiats other than the newly acquired fiat on the date of sale of the "sold asset' one of which was inadvertently as office premises which resulted in the appellant's wrong claim u/s. 54F of the Act. Another flat at Sahara Tower was under redevelopment. The appellant was not in possession of said property during the year under consideration and thus appellant could not exercise his dominion over the said residential house. Accordingly, it cannot ....
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....id deduction u/s 54F of the 1961 Act , the assessee withdrew the said claim of deduction u/s. 54F of the Act during the course of assessment proceedings conducted u/s 153A r.w.s. 143(2)/143(3) of the 1961 Act, which ultimately led to the additions to the tune of Rs. 30, 39, 742/- being made in the assessment order passed by the AO which was later confirmed by learned CIT(A). As per provisions of Section 271(1)(c) of the 1961 Act read with explanation 1 , if the taxpayer come forward and offer an explanation as to bonafide of its claim and reasonable cause, it will take the taxpayer out of the clutches of penalty provisions as are contained in Section 271(1)(c) of the 1961 Act. Provisions of Section 271(1)(c) read with explanation 1 are repr....
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....prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him], then, the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed." Despite assessee offering an explanation that it was due to bonafide reasons as detailed below which enabled the assessee to have belief that assessee was entitled to claim of deduction u/s. 54F of the 1961 Act , none of the authorities below have verified the said contentions on the touchstone of accuracy of the said claim on f....
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....de to the file of AO for fresh de-novo adjudication both on facts as well on law whether these causes/explanation as set out by the assessee constituted reasonable and bonafide cause to come to conclusion that the assessee was entitled for deduction u/s 54F of the 1961 Act to take it out of the clutches of penal provision as are contained in Section 271(1)(c) of the 1961 Act. The assessee is directed to produce all necessary evidences to prove that the averments made by it are correct to come to conclusion/belief that the assessee was entitled for deduction u/s 54F of the 1961 Act and it constituted bonafide explanation and reasonable cause to take it out of the penal provisions as are contained in Section 271(1)(c) of the 1961 Act read wit....