Is penalty on interest income justifiable when such income has not been offered to tax?

Last updated: 05 September 2021

Court :
ITAT Hyderabad

Brief :
This is assessee�s appeal for the A.Y 2015-16 against the order of the CIT (A)-3, Hyderabad, dated 7.2.2019 confirming the penalty order passed by the Assessing Officer u/s 271(1)(c) of the Act.

Citation :
ITA No.931/Hyd/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
Hyderabad ‘ A ‘ Bench, Hyderabad
(Through Video Conferencing)
Before Smt. P. Madhavi Devi, Judicial Member
AND
Shri Laxmi Prasad Sahu, Accountant Member
ITA No.931/Hyd/2019
Assessment Year: 2015-16

Raasi Refractories Ltd
Hyderabad
PAN:AABCR0333H

Dy. Commissioner of
Income Tax, Circle 3(1)
Hyderabad

Assessee by: Sri A.V. Raghu Ram
Revenue by: Smt. N. Esther, DR
Date of hearing: 03/08/2021
Date of pronouncement: 30/08/2021
ORDER

This is assessee’s appeal for the A.Y 2015-16 against the order of the CIT (A)-3, Hyderabad, dated 7.2.2019 confirming the penalty order passed by the Assessing Officer u/s 271(1)(c) of 2. the Act.

2. At the outset, it is seen that there is a delay of 16 days in filing of the appeal before the Tribunal and the assessee has filed an application explaining the reasons for the delay and sought condonation of delay.

3. At the outset, it is seen that there is a delay of 16 days in filing of the appeal before the Tribunal and the assessee has filed an application explaining the reasons for the delay and sought condonation of delay.

4. Further, the Assessing Officer also noticed that the assessee has received interest income of Rs.23,98,370/-, which was not taken into a/c while computing the income of the assessee. When asked to explain, the assessee submitted that the management erroneously omitted to consider the same in its computation of income and therefore, the assessee has no objection to the addition. Accordingly, the sum of Rs.23,98,370/- was also brought to tax.

5. In the result, assessee’s appeal is partly allowed for statistical purposes.
Order pronounced in the Open Court on 30th August, 2021.

Please find attached the enclosed file for the full judgement