TaxTMI 
TaxTMI 
2025 (3) TMI 1985
X X X X Extracts X X X X
X X X X Extracts X X X X
....7.01.2020 relevant to the assessment years 2014-15, 2015-16, 2011-12 and 2016-17. Since common grounds in identical facts involved in these appeals, heard together and are being disposed of by this common order for the sake of brevity. 2. The sole issue is whether the lower authorities are justified in levying penalty u/s 271(1)(c) of the Act in the peculiar facts of the case for AYs 2011-12, 2014-15, 2015-16 & 2016-17 ? 3. First we are taking ITA No. 2740/Chny/2024 for AY 2011-12 as lead case. Brief facts of the case are as under: The appellant is a Multi state Co-operative Society and governed by the Multi State Co-operative Societies Act. For the assessment year 2011-12, the appellant has filed the return of income on 11/04/2018....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the interest expenses incurred against the interest on FDs and savings bank Interest as under: 4. The next common ground raised in the appeals of the assessee relates to confirmation of disallowance of interest income earned from FDs and Trusts, which was treated as income from other sources. The ld. Counsel for the assessee has submitted that similar issue was subject matter in appeal before the Tribunal for the assessment years 2012-13 and 2013-14 and the Tribunal has remitted the matter back to the file of the Assessing Officer for de novo adjudication and thus, prayed that similar directions may also be given for the assessment years under appeal. The ld. Counsel further submitted that there is a direct nexus between the loans availe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....A. Nos. 2898 & 2899/Chny/2016 vide order dated 02.12.2020, the Tribunal has observed and held as under: 11. We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below. 12. The only issue for consideration is the expenditure incurred by the Assessee to earn the interest income. The case of the Assessee is that the Assessing Officer has treated the interest income earned by the Assessee has income from other sources and estimated the expenditure only. In the Assessment Order, the Assessing Officer has not properly considered the expenditure incurred by the Assessee to earn the interest income and simply estimated the interest expenditure. 13. In our v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the appellant submits that it has furnished all the particulars of income in the return of income and claimed exemption u/s 80P on the interest income earned. This claim was only disallowed by the assessing officer and the appellant agitated the issue till the level of the ITAT. The appellant submits that it cannot be charged with furnishing of inaccurate particulars of income simply because the claim made by the appellant was not allowed by the assessing officer. The appellant rely on the decision of the Apex Court in the case of Reliance Petro Products Ltd. (189 Taxmann 322) wherein it was held as under:- "Merely because assessee had claimed expenditure which claim was not accepted or was not acceptable to the appellant (Departme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dinate bench of Tribunal dated 10.02.2022 in ITA Nos.2478/Chny/2017, 2703/Chny/2018, 558 & 559/Chny/2020. We find that in the I.T.A. Nos. 2898 & 2899/Chny/2016 vide order dated 02.12.2020 the Tribunal observed and held as under:- '12. The only issue for consideration is the expenditure incurred by the Assessee to earn the interest income. The case of the Assessee is that the Assessing Officer has treated the interest income earned by the Assessee has income from other sources and estimated the expenditure only. In the Assessment Order, the Assessing Officer has not properly considered the expenditure incurred by the Assessee to earn the interest income and simply estimated the interest expenditure.' 13. In our view, it is ....