Smt. Maya K. Dharwani Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that imposition of penalty u/s. 271(1)(c) of the Income Tax Act justified as deduction was claimed u/s. 54EC and 54F of the Income Tax Act by furnishing inaccurate particulars.
Facts- The assessee is an individual having interest on loans and income from house property as main source of income. The assessee filed her return of income for the A.Y. 2013-14 on 14-03-2014 declaring total income of Rs.8,63,230/-. The case was selected for the scrutiny and the assessment was completed u/s.143(3) of the Act, after disallowing deduction u/s.54EC of the Act of Rs. 41,00,000/- and deduction u/s.54F of the Act of Rs.20,00,000/-. The AO also initiated penalty proceedings u/s.271(1)(c) of the Act for furnishing inaccurate particulars. CIT(A) confirmed the penalty. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee herself admitted that the claim is incorrect and by filing revised statement of income on 19- 10-2015 withdrew the claim u/s 54EC of the Act, which clearly is an act of furnishing inaccurate particulars. Therefore, in our considered opinion, the Revenue rightly imposed the penalty for intentionally furnishing inaccurate particulars of income within the meaning of section 271(1)(c) of the Act relating to quantum of incorrect deduction under section 54EC of the Act.
