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2018 (9) TMI 876 - DELHI HIGH COURTPenalty u/s 271(1)(c) - while computing deduction under Section 10B they had wrongly netted the interest earned on the income tax refund against the interest paid - Tribunal deleted the penalty - Held that:- There is no dispute or debate that the respondent-assessee had specifically declared and stated in the income tax return that they had netted the interest received on the income tax refund from the interest paid for the purpose of computing deduction under Section 10B of the Act. Material facts were clearly disclosed, and not concealed and withheld. Tribunal has referred to the decision of MAK Data Private Limited versus CIT, (2013 (11) TMI 14 - SUPREME COURT) and CIT versus Zoom Communication Private Limited, (2010 (5) TMI 34 - DELHI HIGH COURT), to accept that assessee had discharged the onus to establish its bona fide while making claim for deduction/exemption under Section 10B of the Act by netting of interest received from Income Tax Department, from interest paid to the bank to make payment of tax to the Income Tax Department. There was a connect and link between the interest paid to the bank, which was business expenditure, and interest received from the Income Tax Department. Referring to factual matrix, the Tribunal has accepted the reasoning and finding given by the Commissioner of Income Tax (Appeals) that the conduct of assessee in netting of income received from interest paid was bonafide. The said finding is a finding of fact and no substantial question of law arises. No penalty to be levied - Decided in favour of assessee
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