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2014 (1) TMI 910 - ITAT AHMEDABADDeletion of penalty u/s 271(1)(c) of the Act – Held that:- The Assessing Officer has nowhere alleged that the payment of interest made to finance company on which the TDS was deductable is non genuine or bogus - It is also a fact that there is nothing on record or alleged that the payment of interest is excessive or unreasonable - The disallowance has been made for non-deduction of TDS in view of provisions of section 40(a)(ia) - The legal fiction created by section 40(a)(ia) will not attract penalty for furnishing of inaccurate particulars of income because there is no inaccurate particulars in the return of income. Relying upon CIT Vs. Mother India Refrigeration Pvt. Ltd. [1985 (8) TMI 2 - SUPREME Court] - legal fictions are created only for some definite purpose and they must be limited to that purpose and should not be extended beyond that legitimate field - Further in CIT Vs. Reliance Petro Products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] - merely because the Assessee has claimed the expenditure, which claim was not accepted or was not acceptable to the Revenue, that by itself would not, attract penalty u/s 271(1)(c) – there was no reason to interfere with the order of CIT(A) – Decided against Revenue.
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