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2013 (9) TMI 1125 - AT - Income TaxPenalty u/s 271(1)(c) - claim for deduction of interest tax - Held that:- It cannot be held that the assessee’s claim for deduction of interest tax collected by the borrowers from the chargeable interest cannot be held to be not bonafide at least at the time of filing of return of income. Even though such a claim has been disallowed under the re–assessment proceedings and also confirmed by the appellate authority, however, the same cannot be held that in the penalty proceedings such a finding will apply automatically. In the penalty proceedings, the assessee can very well furnish explanation as to what was the bonafide ground and reasons for claiming such a deduction and if such an explanation has not been found to be false, the penalty cannot be levied. In this case, it cannot be held that the assessee has furnished any kind of inaccurate particulars because all the details were duly furnished along with the return of income and simply because such a claim was not allowed in the subsequent proceedings, it cannot be held that the assessee is guilty of furnishing of inaccurate particulars of income. - Decided in favour of assessee.
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