TaxTMI 
TaxTMI 
2019 (6) TMI 1215
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....as levied by the AO under section 271(1)(c) of the Act towards wrong claim of TDS of Rs. 3,48,120/-. 3. The facts in brief are that the AO during the course of assessment proceedings observed that the assessee has claimed TDS which includes Rs. 3,48,120/- in respect of which the corresponding income has not been offered by the assessee. The said TDS belonged to some other party and has been claimed by the said party in its return of income besides offering the corresponding income to tax. The AO noted that since the assessee has not offered the tax corresponding income, the credit of TDS of Rs. 3,48,120/- can not be allowed and hence rejected the claim of the assessee. The AO initiated penalty proceedings under section 271(1)(c) of the Act....
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....ng both the parties and perusing the material on record, we observe that in this case the penalty was levied for wrong claim of TDS in the return of income to the tune of Rs. 3,48,120/- without offering the corresponding income to tax. In fact this TDS did not belong to the assessee but appeared in the form No.26AS and accordingly claimed by the assessee. Arguments of the Ld. Counsel was that in any case even if the TDS is claimed in the return of income, the credit is only allowed after verification of the TDS as appearing in form 26AS. We find that the only addition made in the assessment order was in respect of disallowance under section 14A of the Act. Now the only issue before us is that where there is no addition made to the income ....