2020 (10) TMI 1253

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....N ALANKAMONY, J. This appeal is filed by the assessee against the order of the Ld. CIT (A)-9, Hyderabad in appeal No. 0194/IACIT, Circle-6(1)/20-15-16, dated 19/05/2017 passed U/s. 271(1)(c) r.w.s 250(6) of the Act for the AY: 2005-06. 2. The assessee has raised several grounds in all its appeal however, the crux of the issue is that the Ld. CIT (A) has erred in upholding the penalty levied ....

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....HUF filed its return of income admitting income of Rs. 3,72,330/-. 4. Thereafter, assessment U/s. 143(3) r.w.s 153C of the Act was completed accepting the return of income filed by the assessee. Subsequently, the Ld. AO invoked penalty proceedings U/s. 271(1)(c) of the Act and levied penalty on the assessee for Rs. 66,908/- for the AY: 2005-06 by rejecting the plea of the assessee that inadvert....

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....erest accumulated on the FDs maintained with various banks. The amount of FDs is also not phenomenal. It is also obvious that the Banks would have deducted tax at source for the interest earned by the assessee on its fixed deposits. It is also apparent that as soon as the assessee realised its omission, it had filed the return of income and the same was accepted without any addition. In this situa....

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....he fixed deposits might be lost sight off as the interest gets automatically accumulated with the deposits. The need to evaluate those Fixed Deposits will arise only when funds are required for a specific purpose. In the case of the assessee-HUF it appears that the assessee took stock of the Fixed Deposits when they were in the process of purchasing the house property and the interest earned by th....