2021 (12) TMI 1043

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....llegedly for furnishing of inaccurate particulars of income. The conclusion drawn is based on surmises and conjectures. Hence it is prayed that penalty imposed u/s. 271(1)(c) be deleted. ii) That the Ld. CIT(A)-2 Chandigarh has erred in law and on facts in not considering the established principles laid down by the Hon' Supreme Court and other judicial pronouncements for imposing the penalty u/s. 271(1)(c), thus denying the natural justice to the appellant. It is, hence prayed that the justice be provided to the appellant by following those principles. iii) That the Appellant reserves the right to alter, add or delete any grounds of appeal at the time of hearing. 2. A perusal of the above grounds of appeal reveals that the assessee....

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....ting the income under the head 'business income' and not under the head 'income from the house property'. 3. The assessee replied vide letter dated 03.11.2015 that the firm was formed on 11.04.2011. The main objects of the firm were to provide IT related solutions and to provide space solutions. So the assessee firm was providing furnished space to the parties as per their requirement along with the furniture, IT equipments, work stations, power back-ups etc. As the firm was not providing only the vacant space on rent but providing the space with various other fixtures as per requirement of party, according the income from space rentals has been shown as income from Business and Profession. 4. However, the AO did not get s....

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.... out that even in the preceding year, the assessee had offered the same income as business income which was accepted by the AO in scrutiny assessment proceedings. 8. I have considered the rival submissions. Admittedly the assessee has not concealed the aforesaid rental income received from two parties. The income was duly offered for taxation, however, as income from business and profession. The assessee in this respect has relied upon its objects wherein it has been mentioned that one of the object of the assessee was to provide space solutions to its clients. The assessee taking shelter under the aforesaid object, returned the income from the space rented out by it to two parties as business income. However, the income tax authorities an....