2021 (6) TMI 256

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....lty of Rs. 6,64,730/- dated 17.05.2017 is bad in law on the facts of the case and the Ld, Commissioner of Income Tax (Appeals) has erred in sustaining the addition made in the assessment. 2. That the Ld. Commissioner of Income Tax (Appeals) has erred in sustaining the penalty u/s 271(1)(c) of Rs. 6,64,730/- for "furnishing of inaccurate particulars of income" on the basis of the disallowances made of claimed expenses in the LTCG giving detailed discussions, relying and discussing of judicial pronouncements thereby establishing that issues are debatable and hence there allegation is baseless. Hence the penalty needs to be deleted. 3. That the Ld, Commissioner of Income Tax (Appeals) has erred in sustaining the addition made....

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....sked to furnish evidence claim of only Rs, 50.000/- was withdrawn. However no supporting evidence for claim of Rs. 3.50 Lakh obtained by assessee on 01.01.2011 from canfin Homes Ltd. against the security of the said property were provided. However, the assessee could not produce any evidence to suggest that the loan availed has been actually utilized for the purpose of improvement of the property. Therefore, the Assessing Officer disallowed Rs. 4 Lakh claimed by assessee in his original return of income in respect of cost of improvement and Rs, 67,000/- on cost of expenditure related to transfer of property. IV. It was further noticed that assessee had indexed the amount of interest of Rs. 12,06,868/- paid till 25.08.2012 on the ho....

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....ng of inaccurate particulars of income. 6. Upon assessee's appeal, Ld.CIT(A) also confirmed the assessing officer's action. While confirming the penalty Ld.CIT(A) expounded that only issue for consideration as to whether penalty is leviable or not is whether tax was collected or not. The portion of Ld.CIT(A) order dealing with this aspect reads as under:- "I have gone through the appellant submission and I do not agree with the theory that as no tax impact there is no loss to revenue had been done. The fact remains that appellant has furnished inaccurate particulars of income and hence penalty is leviable Ignorance of law cannot be taken a plea of claiming inaccurate deductions. Assessment proceedings and penalty proceedings ....