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2019 (4) TMI 262 - ITAT AMRITSARPenalty u/s 271(1)(c) - excess claim of interest expenditure on loan for property - inadvertent bonafide mistake on the part of her accountant - assessee voluntarily filed with the A.O that aforesaid mistake of excess claim of deduction of interest expenditure to be added to her returned income - HELD THAT:- we are of the considered view that now when the assessee in the course of the assessment proceedings had voluntarily admitted the mistake that had crept in her ‘return of income’, then merely for the reason that she could not undo/rectify the mistake in her ‘Original’ return of income by filing a ‘revised’ return of income would not justify levy of penalty under Sec. 271(1)(c) in her hands. It is neither the case of the revenue, nor a fact that the excess claim of deduction that was raised by the assessee was found to be a bogus claim that was raised in the thin air. Rather, as observed the aforesaid claim of interest expenditure raised by the assessee was in context of the loans which were raised by her for making of investments in other concerns. We thus in terms of our aforesaid observations are of a strong conviction, that though the disallowance made by the A.O at the behest of the assessee would though suffice for saddling her with additional tax liability, however, in the totality of the facts of the case no penalty under Sec.271(1)(c) on the said count could have validly been imposed on her. - Decided in favour of assessee.
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