Bhavin Mahendra Dagli v. ACIT, Circle-2,Bhavnagar
[Citation -2016-LL-1020-39]
| Citation | 2016-LL-1020-39 |
|---|---|
| Appellant Name | Bhavin Mahendra Dagli |
| Respondent Name | ACIT, Circle-2,Bhavnagar |
| Court | ITAT-Ahmedabad |
| Relevant Act | Income-tax |
| Date of Order | 20/10/2016 |
| Assessment Year | 2007-08 |
| Judgment | View Judgment |
| Keyword Tags | accrued interest • interest income • imposition of penalty |
| Bot Summary: | The assessment was completed by making following additions/disallowances:- Sr. No. Nature of addition Amount 1 On account of NSC Maturity 1,14,072/- 2 On account of interest income on 4,07,238/- various S/B account including FDR 3 On account of accrued interest on 12,18,981/- HDFC Bank 4 On account of accrued interest income 4,84,734/- in view of provisions u/s. 64(ii) 5 On account of interest income 19,22,500/- 6 On account of unexplained credits in 34,323/- the various bank accounts. CIT(A) gave following relief the assessee:- Sr. No. Nature of addition Amount 1 On account of NSC Maturity 60,000/- 2 On account of interest income on 3,24,934/- various S/B account 3 On account of accrued interest on 10,40,000/- HDFC Bonds 4 On account of accrued interest income 4,84,734/- u/s. Counsel for the assessee vehemently stated that the levy of penalty is unjustified as neither the assessee has filed inaccurate particulars of income nor he has concealed any income. A perusal of the order of the First Appellate Authority in quantum proceedings shows that interest on NSC Rs. 54,072/- was neither shown by the assessee on maturity of NSC nor an accrual basis. Similarly interest on Savings account of Rs. 64,304/- was admitted by the assessee as not shown in the return of income. So far as the interest addition on HDFC Bonds amounting to Rs. 21,32,840/- is concerned, we find that the assessee had computed the simple rate of interest instead of compound rate of interest. |