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Income Tax Appellate Tribunal, JODHPUR BENCH (SMC
Before: SHRI R.C. SHARMA
IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH (SMC), JODHPUR
BEFORE SHRI R.C. SHARMA, ACCOUNTANT MEMBER
ITA No. 337/Jodh/2018 (ASSESSMENT YEAR-2013-14
Smt. Nani Bai Goswami, Vs The Income Tax Ward No. 21, Sewa Sadan Officer, Wali Road, Behind Bhadada Ward-5, Bhilwara Bagh, Bhilwara (Appellant) (Respondent) PAN: BBGPG0156B
Assessee By Shri Hemant Chhajed (CA) Revenue By Shri Shri A. K. Das (JCIT) DR Date of hearing 17/07/2018 Date of 18/07/2018 Pronouncement
O R D E R PER: R.C. SHARMA, AM
This is an appeal filed by the assessee against the order of
the CIT(A), Ajmer dated 17/04/2018 for the A.Y. 2013-14 in the
matter of imposition of penalty u/s 271(1)(c) of the Income-tax
Act, 1961 [hereinafter referred to as ‘the Act’, for short]. The
grounds raised by the assessee in appeal are reproduced as
under:
“1. The impugned penalty of Rs. 61,000 made in the order u/s 271(1)(c) dated 27.06.2017 by learned Assessing Officer and confirmed by CIT(Appeals) vide order dated 17.04.2018 for furnishing inaccurate particulars of income/concealment of income are bad in law and on
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facts of the case, for want of jurisdiction and various other reasons and hence the same kindly be deleted.
The cognizance of the fact that the assessee a widow 78 years old and having no son, is ignorant of her income from FDR, TDS deducted by bankers and filing of income tax return. Therefore, it would not be justified for such lady to face concealment of income and inaccurate particulars of income. Soon she received a notice from income tax department she complied with all the formalities in consultation with Chartered Accountants and filed her first return of income. Some of tax payment were adjusted thru TDS and rest were paid by self-assessment tax. Therefore concealment of income with intention to make default does not apply in this case. Further furnishing inaccurate particulars of income also does not arises because interest on FDR is calculated manually on each FDR which might differ with bankers. Therefore interest on FDR which is not supported with interest certificate from banker and based only on manual calculation of each FDR would not amount to furnish inaccurate particulars of income.
The appellant prays your honour indulgences to add, amend or alter of or any of the grounds of the appeal on or before the date of hearing.”
Rival contentions have been heard and record perused. The
facts in brief are that the assessee is a widow and an illiterate
lady and running above 80 years age. The Interest on FDR in
response to notice u/s 148 which the assessee had shown in her
return of income for the A.Y. 2013-14 at Rs. 3,24,166/- was
emanated from the roughly estimation of total FDRS.
Subsequently after filing the return of income the assessee
received notice u/s 143(2) and on manual calculation by the
assessee the interest amount was arrived at Rs. 3,75,185/-.
Thus the interest difference of Rs. 51,019/- between return of
3 ITA 337/Jodh/2018 Smt. Nani Bai Goswami, Bhilwala Vs. ITO
income and the manual calculation during assessment
proceeding u/s 143(2) was alleged to be a concealment of
income by the learned A.O. Accordingly, the Assessing Officer
levied penalty u/s 271(1)(c) of I.T. Act, 1961.
From the record, I found that the rate of interest which
was applied manually was based on the initial contacted rate
which happens to be varied at the time of renewal. Therefore,
calculation of interest on FDR could not be worked on substance
unless banker give certificate of interest credited in the
depositor’s accounts year wise. In the instance case the banker
viz. Bhilwara Urban Co-operative Bank Ltd. Bhilwara issued the
interest certificate of Rs. 9,70,483/- credited in the assessee
account in a span of 5 years but did not give the actual interest
year wise. Further the Bankers did not deduct any TDS due to
receiving 15H in anticipation that the taxable income of the
assessee is below the taxable limits.
Thus the difference of Rs. 51,019/- in interest income in
absence of the banker’s certificate and based on the estimation
calculation does not amount to concealment of income.
4 ITA 337/Jodh/2018 Smt. Nani Bai Goswami, Bhilwala Vs. ITO
From the record, I found that being old lady was earning
interest on deposits with Bhilwara Urban Co-operative Bank Ltd.
On receiving the correct certificate from the bank, the assessee
duly offered the interest income as per the certificate given by
the Bank and also paid tax thereon. Under these facts and
circumstances, we did not find any merit for levy of penalty. It
is pertinent to mention here that assessee being very old lady,
also did not claim TDS on the interest so deducted by the Bank.
Accordingly, we direct to delete the penalty so imposed.
In the result, appeal of the assessee is allowed.
Order pronounced in the open court on 18/07/2018.
Sd/- [R.C. SHARMA] Accountant Member Dated : 18/07/2018 *Ganesh Kr. Copy to : 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR 6. Guard File (ITA No. 337/Jodh/2018)
Assistant Registrar Jodhpur Bench