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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-2’, NEW DELHI
ORDER PER J.S. Reddy, A.M. This is an appeal by the Assessee against the order dated 25.02.2014 of the Ld. CIT(A)-XXIII, New Delhi.
The facts brought out at para 2 of Ld. CIT(Appeals) order page 2 which is extract for the reference :- “2. Assessment in this case was completed u/s 143(3) of the Act and during the course of assessment proceedings, Assessing Officer noted that assessee had declared business loss of Rs. 2,60,794/- and set off this loss from Income shown under the heads- Capital Gains of Rs. 23,270/- and Income from House Property of Rs. 4,200/- and carried forward the remaining loss of Rs. 2,33,324/-. Further, it was noted by the Assessing Officer that assessee failed to disclose the rental income of Rs. 1,70,600/-received from SABS Architects & Engineers (P) Ltd. which was duly found reflected in the AIR information
2 Prem Lakhotia relevant to the assessee. In this respect, it was submitted by the assessee that rental income could not be disclosed due to clerical error.”
On appeal the first appellate authority confirmed the order of the Assessing Officer. Further aggrieved the assessee is in appeal.
After hearing rival contention, I am of the considered opinion that the levy of penalty is not warranted in this case as the explanation furnished by the assessee in my opinion is bona fide. The charge that the assessee tried to de fraud the Revenue is false for the reason that, the assessee has neither reported the rental income, nor claimed deduction from the same of interest paid on loan nor claimed credit of tax deducted at source from this income. At page 22 of the paper book, the assessee has filed the revised competition which, demonstrates that even after considering the said income assessed total income is below taxable limit. 5. Under these circumstances, I delete the penalty levied and allow the appeal of the assessee. 6. In the result appeal of the Assessee is allowed. (Order Pronounced in the Court on 07/10/2015). Sd/- (J.S.Reddy) ACCOUNTANT MEMBER Dated: 07 /10/2015 *B.Rukhaiyar* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR
Date Initial 1. Draft dictated on 1.10.2015 2. Draft placed before author 1.10.2015 3. Draft proposed & placed before the JM/AM second member 4. Draft discussed/approved by Second JM/AM Member. 5. Approved Draft comes to the Sr.PS/PS PS/PS 6. Kept for pronouncement on PS 7. File sent to the Bench Clerk PS 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order.