TMI Blog2014 (9) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... etc., whereas the interest income was paid on account of money borrowed for purchase of land, which was held as stock-in-trade – Tribunal rightly held that the assessee has been able to discharge the onus under Explanation No.1 to Section 271(1)(c) of the Act and, therefore, penalty should not have been imposed – thus, the order of the Tribunal is upheld – Decided against revenue - ITA No. 478/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authenticity and genuineness of the expenditure which consisted of interest payment of ₹ 40,76,035/- and miscellaneous expenditure of ₹ 2,32,282/-. It was held that the interest should be capitalised and miscellaneous expenditure being in nature of pre-operative expenses could not be allowed in the said year. Income of the respondent-assessee was assessed at 'Nil'. Penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has been able to discharge the onus under Explanation 1 to the said section and show that he had acted bonafidely in making the claim and all facts relating to and material to the computation of the total income were disclosed. It is this second aspect which has resulted in deletion of penalty. 5. The respondent-assessee was engaged in the business of purchase of land and real estate develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held as stock-in-trade. 6. Thus, looking at the legal issue involved, the appellate authorities held that the respondent-assessee has been able to discharge the onus under Explanation No.1 to Section 271(1)(c) of the Act and, therefore, penalty should not have been imposed. The questions and contentions of this nature can be highly debateable and two views were possible and capable in the pres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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