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Income Tax Appellate Tribunal, “A” BENCH, MUMBAI
Before: SHRI SHAMIM YAHYA & SHRI RAVISH SOOD
This appeal by the assessee is directed against order of Ld. CIT- A dated 12.8.2013 and pertains to assessment year 2005-06. 2. The issue raised is that Ld. CIT (A)erred in confirming the levy of penalty of Rs14,100/- u/s. 271 (1) (C).
Abhilasha C.H.S. Ltd., ITA no.5652/Mum./2013 3. We have heard the Ld. DR. Non appeared on behalf of the assessee. However, in our considered opinion the issue can be adjudicated by hearing the Ld. DR and perusing the record.
We find that in this case penalty was levied for not offering interest received from HDFC Bank amounting to Rs. 57,500/- claiming the same to be exempt u/s. 80(P). Penalty was levied on ground that said income is not covered under exemption u/s. 80(P).
Upon hearing the Ld. DR and perusing the record in our consider opinion a bonafide belief on the part of the assessee that interest income is also exempt u/s. 80P cannot be said to be contumacies so as to warrant levy of penalty u/s. 271 (1) (C) of I.T. Act. Our this view is fortified by the decision of a larger bench of Hon’ble Apex Court in the case of Hindustan Steel Ltd. vs. State of Orrisa 83 ITR 26.
Accordingly we set aside the order of authorities below and delete the levy of penalty.
In the result this appeal filed by the assessee stands allowed.
Order pronounced in the Open Court on 16.03.2017 Sd/- Sd/- RAVISH SOOD SHAMIM YAHIYA JUDICIAL MEMBER ACCOUNTANT MEMBER
Abhilasha C.H.S. Ltd., ITA no.5652/Mum./2013