Case Law Details
Posun Credit Co. Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that penalty under section 271(1)(c) of the Income Tax Act not leviable as assessee claimed the deduction u/s. 80P(2)(a)(i) of the Act, with respect to the interest income under a bonafide belief.
Facts- The assessee is a Co. Operative Society providing credit facility to its members. For A.Y. 2013-14, the assessee filed its Return of Income claiming deduction u/s. 80P(2)(a)(i) of Rs. 16,43,080/-. AO found that the assessee was in receipt of aggregate interest income from deposits with nationalized banks of Rs.20,85,266/- and interest on Income Tax Refund of Rs. 22,863/-. The assessee called upon to explain why the aggregate interest income should not be taxed under the head “Income from Other Sources” and disallowing the claim of deduction u/s. 80P(2)(a)(i) of the Act. CIT(A) also dismissed the appeal.
Thereafter, AO initiated penalty proceedings why penalty u/s. 271(1)(c) should not be levied, since the assessee has furnished “inaccurate particulars of income”. After considering the reply filed by the assessee, AO levied a penalty of Rs.5,04,622/- u/s. 271(1)(c) of the Act.
Aggrieved against the Penalty order, the assessee filed an appeal before Ld. CIT(A) who partly allowed the appeal. Being aggrieved, the present appeal is filed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
