2025 (1) TMI 1170

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....nce, which business is governed by the Insurance Regulatory and Development Authority of India (IRDA). The appellant obtained the necessary licence for conducting business as a TPA from IRDA and started approaching the Insurance companies for business. The appellant also deposited Rs. 1,00,00,000/- in fixed deposit as a condition for obtaining licence as per IRDA regulations. 3. For the year under consideration, the appellant filed its Return of Income (RoI) claiming loss of Rs. 7,76,645/-. There were twin issues involved before the Assessing Officer. The Assessing Officer found that the appellant-assessee had not commenced business and hence disallowed the expenses. The Assessing Officer also treated the interest income (received from f....

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....er is the subject matter of challenge in the present appeal. 7. We have heard the parties and gone through the record. 8. It is submitted by the learned AR that there was no occasion for levying of penalty in the absence of there being any case made out of concealment of income by the assessee. It is submitted that there was a bona fide dispute as to treatment of the interest income, viz. as to whether it should be treated as 'income from profits and gains from business or profession' or as 'income from other sources'. The learned AR was at pains to point out that the interest income was earned on the fixed deposit which the appellant was required to make as a condition for obtaining licence as per IRDA regulations and, therefore, it ....

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....ing out in details the facts leading to filing of the appeal, the only discussion on merits is to be found in para 5 as under :- "5. Decision : I have gone through the Penalty Order, Form 35, grounds of appeal and details available in the ITBA. Accordingly, the levy of penalty u/s 271(1)(c) dated 29/11/2019 of Rs. 3,24,605/- only by the Assessing Officer is being dealt ground wise as shown below- Ground No. 1 - The AO has carefully taken the only ground (No. 4) confirmed by Ld. CIT(A)-3, Mumbai in his order u/s 250 dated 1/08/2018, in respect of interest earned by the assessee on fixed deposits. These are well quantified. This ground of the appellant is dismissed. Ground No. 2 - The Assessing Officer has ....