TaxTMI 
TaxTMI 
2020 (9) TMI 608
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....de Maharashtra Water Conservation Corporation Act, 2000 with the purpose of conservation of water and implementation of irrigation project approved by the Government of Maharashtra. The return of income for the year under consideration was filed by the assessee on 30.09.2011 declaring a loss of Rs. 7,20,34,168/-. Thereafter, the revised return of income was filed by the assessee on 29.11.2011 declaring reduced loss of Rs. 7,18,42,190/-. During the course of assessment proceedings, it was noticed by the Assessing Officer that the interest income of the assessee received from Bank of Maharashtra for the year under consideration aggregated to Rs. 4,70,15,520/- but the income from bank interest as declared by the assessee was only Rs. 1,84,89,....
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....ose the penalty of Rs. 88,14,536/- u/s 271(1)(c) of the Act being 100% of tax sought to be evaded by the assessee on the addition made on account of the undisclosed interest income. 3. The penalty imposed by the Assessing Officer u/s 271(1)(c) was challenged by the assessee in appeal filed before the ld. CIT(A) and after considering the submission made on behalf of the assessee as well as material available on record, ld. CIT(A) cancelled the said penalty imposed by the Assessing Officer for the following reasons given in para 6 of his impugned order :- "6. I have given due consideration to the facts of the case and the submissions made by the assessee. Section 271(1)(c) is attracted where in the course of any proceedings under the Act, ....
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.... A.Y.2012-13, when the assessee withdrew the FD from the Bank and it recognised the same by incorporating the sum in its P & L Account as prior period income. The assessee did not receive any communication from Bank of Maharashtra regarding accrual of income to the tune of Rs. 2,85,26,008/- or TDS made on this amount during the relevant previous year. Under the circumstances, it can be safely inferred that the appellant did not have any knowledge about the accrual of income to the extent of Rs. 2,85,26,008/-. The bona fide of the assessee is also reinforced by the fact that it relied only on the communication made by the Bank and did not claim credit for TDS of the full amount of Rs. 66,85,682/- but had claimed credit for the amount which....
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....herefore, I direct the assessing officer to cancel the penalty levied by him." 4. Aggrieved by the order of the ld. CIT(A), the Revenue has preferred this appeal before the Tribunal. 5. At the time of hearing fixed in this case before the Tribunal, none has appeared on behalf of the assessee. This appeal of the assessee is, therefore, being disposed of ex-parte qua the respondent-assessee after hearing the argument of the ld. DR who has mainly relied on the penalty order passed by the Assessing Officer in support of the Revenue's case. It is observed that a categorical explanation was offered by the assessee in support of the alleged undisclosed income from bank interest at the stage of the assessment itself that the interest income from ....