TaxTMI 
TaxTMI 
2022 (7) TMI 863
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....ssee has raised following grounds of appeal;- "Ground I: Levy of penalty under Section 271(1) (c) of the Act: Rs. 2, 81, 51,400/- 1.1 The learned Commissioner of Income-tax (Appeals) 2, Thane ['CIT(A"] has erred in law and on facts in levying penalty of Rs. 2,81,51,400 under Section 271(1 (c) of the Act. . 1.2 The learned CIT(A) has erred in holding that the appellant has furnished inaccurate particulars of income by claiming deduction under section 80IA on interest income The learned CIT(A) failed to appreciate that, the deduction under Section 801A of the Act was claimed based on various judicial precedents, and (ii) penalty cannot be levied where there exists difference of opinion. 1.3. The learned CIT (A) has erred in holdin....
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....learned CIT (A), he found that assessee has claimed deduction under Section 80IA of the Act on interest on Fixed Deposit of Rs.8,67,66,538/- which is also not eligible for deduction under Section 80IA of the Act and therefore, the notice for enhancement was issued and consequently, he passed an order with the above enhancement. 05. He also issued notice under Section 274 read with section 271 (1) (c) of the Act on 31 October 2017 with respect to the enhancement. He was of the view that assessee has furnished inaccurate particulars of income. 06. In response to notice, assessee submitted several judicial precedents, which held that if the amounts are parked in fixed deposits on accounts of business requirement then the interest earned is e....
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....Court in writ petition no. 1410 of 2012, where the assessee has challenged about the tariff rates. The Hon'ble High Court directed the assessee allowing it to collect the same but also held that collection of such amount would be subjected to further orders and therefore, as a prudent businessman assessee kept substantial amount in fixed deposits receipts and claimed deduction on the same as it arose from the tariff collected. It may be the case that deduction under Section 80IA of the Act may not be available to the assessee on the above sum but claim of the same cannot be said to be not bonafide. Assessee has also stated several judicial precedents where interest on fixed deposits receipts is allowed for deduction under Section 80IA o....