SMT. NANI BAI GOSWAMI,BHILWARA vs. ITO, WARD-5, BHILWARA

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

2 ITA 337/Jodh/2018 Smt. Nani Bai Goswami, Bhilwala Vs. ITO

facts of the case, for want of jurisdiction and various other reasons and hence the same kindly be deleted.

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.

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.

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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