2025 (7) TMI 443

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....lding the penalty levied under Section 271(1)(c) of the Act in case of the appellant for AY 2012-13. 2. The appellant reserves the right to add/alter or amend any of the ground of appeal." 3. The assessee filed return of income on 11-09-2012 declaring total income of Rs. 16,72,93,060/-. The case was selected for scrutiny and the assessment was finalized u/s. 143(3) on 30-03-2015 determining the total income at Rs. 19,10,57,692/- after making following additions and disallowances:- Particulars Amount LIC Policy u/s. 37 2,94,652/- Gratuity Provision u/s. 43B 6,44,966/- Leave Encashment 4,50,668/- Interest payment on borrowed fund u/s. 43B(d) (total of Rs. 1,11,96,029/- + Rs. 1,11,78,317/-) 2,23,74,346....

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....h is equal to the 100% of tax in respect of income of Rs. 1,11,96,029/- being interest for A.Y. 2006-07, claimed as deduction in this year. 4. Being aggrieved by the penalty order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The ld. A.R. submitted that the assessee filed return of income on 11-09-2012 thereby claiming interest of Rs. 1,11,96,029/- that of assessment year 2007-08 and also claimed interest of Rs. 1,11,78,317/- of assessment year 2009-10. The assessee, in respect of income of Rs. 6,70,05,849/- being interest which was not paid earlier at one time settlement had credited it in the profit and loss account of the assessment year 2012-13. As the Revenue has denied the same....

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...., the quantum appeal for the assessment year 2012-13 has been withdrawn before the CIT(A) by the assessee since the assessee has got the relief. Once the matter has been settled and the assessee due to the circumstantial relief given by the Tribunal and the Revenue has withdrawn the appeal before the CIT(A). The treatment given in the profit and loss account for the present assessment year i.e. 2012-13 which was filed along with the returns filed on 11-09-2012 by the assessee cannot be treated as furnishing inaccurate particulars of income or concealment of income as at that point of time, the assessee was not allowed deduction of the interest of Rs. 1,11,96,029/- in respect of assessment year 2007-08. Since the assessee has entered into on....